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A fixed Coupon Bond currently has a price of $1,100 and a yield of 6%. All else being equal, you know if the SAME bond
A fixed Coupon Bond currently has a price of $1,100 and a yield of 6%. All else being equal, you know if the SAME bond were to have a yield of 8%, its price would be $900. The coupon rate of this bond _____________.
a. must be greater than 8%
b. must be less than 6%
c. must be between 6% and 8%
d. not enough information to say
e. must be 7%
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