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Consider a bond paying annually a coupon of 5% on 100 EUR face value with a remaining maturity of 4 years. Given spot rates of

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Consider a bond paying annually a coupon of 5% on 100 EUR face value with a remaining maturity of 4 years. Given spot rates of 2%, 3%, 4%, 5% in years 1 to 4, which of the following statements is NOT correct? (1.5 points) O The bond should trade above par. O The bond price will increase from year 0 (today) to year 1 (next year) if the term structure of interest rates remains unchanged. The bond's yield to maturity is below 5%. All answers are correct. O The term structure of interest rates is normal

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