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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

Investors required rate of return is larger than 10%

The discount will increase if investors required rate of return decreases

The discount will decline over time if investors required rate of return remains unchanged

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