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Assume interest rates remain unchanged until the maturity date. Bond X is a discount bond making semiannual payments. The bond pays a coupon rate of
Assume interest rates remain unchanged until the maturity date. Bond X is a discount bond making semiannual payments. The bond pays a coupon rate of 4 percent, has a YTM of 8 percent, and has 20 years to maturity. What is your expectation on the price change of Bond X after 10 years? The price of Bond X will increase and Bond X will become a premium bond The price of Bond X will decrease but Bond X will become a premium bond O Bond X will become a par bond The price of Bond X will increase, but Bond X will remain as a discount bond The price of Bond X will decrease, and Bond X will remain as a discount bond
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