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Consider a 20-year maturity bond with par value $1000 and a 6.5% coupon rate. Suppose the current market yield is 5%. Select a true statement

Consider a 20-year maturity bond with par value $1000 and a 6.5% coupon rate. Suppose the current market yield is 5%. Select a true statement about the bond's market price.

The bond will trade at a discount

The bond will trade at par value

The bond will trade at a premium

Impossible to determine

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