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Assume that a bond has an 8% coupon, paid annually, is priced to have a YTM of 10%. What would happen to the YTM if

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Assume that a bond has an 8% coupon, paid annually, is priced to have a YTM of 10%. What would happen to the YTM if the price and the other bond characteristics remained the same, except that the coupon payments were paid semi-annually instead of annually? a. The YTM would increase above 10% b. The YTM would remain 10% c. The YTM would decrease below 10% d. It cannot be determined without knowing the price of the bond

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