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A 3-year bond with face value $500 paying an annual coupon of $45 is selling at par. Another 3-year bond with face value $800 pays
A 3-year bond with face value $500 paying an annual coupon of $45 is selling at par. Another 3-year bond with face value $800 pays an annual coupon of $75. Will the second bond sell at par, at a discount or at a premium?
a. At par
b. We cannot tell from the information provided
c. At a discount
d. At a premium
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