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( b ) Now suppose you have purchased a 3 - year bond with face value of $ 1 0 0 0 , a 7

(b) Now suppose you have purchased a 3-year bond with face value of $1000, a 7% annual coupon, and a price of $975. Assuming that you hold the bond to maturity, is the yield greater or less than the return on the bond in part (a)?

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