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b. Would you pay $786 for each bond if you thought that a fair market interest rate for such bonds was 13%-that is, if rd=13%
b. Would you pay $786 for each bond if you thought that a "fair" market interest rate for such bonds was 13%-that is, if rd=13% ? I. You would not buy the bond as long as the yield to maturity at this price is less than the coupon rate on the bond. II. You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return. III. You would buy the bond as long as the yield to maturity at this price is less than your required rate of return. IV. You would buy the bond as long as the yield to maturity at this price equals your required rate of return. V. You would not buy the bond as long as the yield to maturity at this price is greater than your required rate of return
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