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A bond has a 10 year maturity, a $1000 face value, and a 7% coupon rate. If the market requires a yield of 8% on

A bond has a 10 year maturity, a $1000 face value, and a 7% coupon rate. If the market requires a yield of 8% on similar bonds, it will mostly trade at a:

A. discount

B. premium

C. discount or premium, depending on its duration

Please give example, such as calculation and so on...

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