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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 had a yield of 8%, its price would be $900. The coupon rate of the bond ________________.
Must be between 6% and 8% | ||
Must be greater than 8% | ||
Must be less than 6% | ||
No enough information to say | ||
Must be 7% |
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