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Consider a coupon bond with a yield to maturity of 1 0 % and time to maturity of 5 years. It is currently priced at

Consider a coupon bond with a yield to maturity of 10% and time to maturity of 5 years. It is currently priced at par (price = par value). Eplain why each of the following statements is true or false.
A. The bond's yield to maturity would remain unchanged until to maturity.
B. If we purchase the bond now, hold it until to maturity, and reinvest the coupons received at 11% reinvestment rate, then we will earn 10% rate of return over the entire holding period.
C. The current bond price implies that the market interest rate is equal to 10%.
D. If you require 8% rate of return, you will not purchase the bond because you think the bond is currently overvalued

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