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A twenty-year bond has a 5% coupon. Yesterday, its yield-to-maturity was 5%. Interest rates rose today, which caused the bonds yield to rise as well.

A twenty-year bond has a 5% coupon. Yesterday, its yield-to-maturity was 5%. Interest rates rose today, which caused the bonds yield to rise as well. Which of the following is true of the bonds price?

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a) Yesterday it was at a premium, today it is at a discount.

b) Yesterday it was at a discount, today it is at a premium.

c) Yesterday it was at par, today it is at a discount.

d) Yesterday it was at a discount, today it is at par.

e) Yesterday it was at par, today it is at a premium.

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