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A discount bond has a par value of $1,000 and a coupon rate of 10%. Which of the following statement is incorrect? Annual coupon is
A discount bond has a par value of $1,000 and a coupon rate of 10%. Which of the following statement is incorrect?
Annual coupon is $100
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Investors required rate of return is larger than 10%
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The discount will increase if investors required rate of return decreases
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The discount will decline over time if investors required rate of return remains unchanged
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