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Assume an investor purchased a fixed coupon-bond at a time when the bonds yeild to maturity was 6.9%. Further assume the investor sold the bond
Assume an investor purchased a fixed coupon-bond at a time when the bonds yeild to maturity was 6.9%. Further assume the investor sold the bond prior to maturity and realized a total return of 7.1%. Which of these most likely occurred while the investor owned the bond? choose one of the choices below:
___The bond's current yield increased above the bond's coupon rate.
___The inflation rate increased.
___New bonds with similar characteristics have coupon rates of 6.5%.
___Market interest rates increased.
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