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Consider a coupon bond that sold at par value two years ago. If interest rates are much lower now than when this bond was issued,
Consider a coupon bond that sold at par value two years ago. If interest rates are much lower now than when this bond was issued, the coupon rate of that bond will likely be ____ the prevailing interest rates, and the present value of the bonds will be ____ its par value. Answer a. above; below b. below; above c. below; below d. above; above
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