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B&B Railroad has an outstanding bond issue that will mature to its $1,000 par value in 10 years. The bond has a coupon rate of

B&B Railroad has an outstanding bond issue that will mature to its $1,000 par value in 10 years. The bond has a coupon rate of 7% and pays interest semiannually. If the required market return on the bond is 9%, will the bond sell at a discount, a premium or at its par value?

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