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Find true statement(s): I. A company issues a $100,000 9% bond and receives $99,000 (ignoring transaction costs). This implies that the effective interest rate is
Find true statement(s): I. A company issues a $100,000 9% bond and receives $99,000 (ignoring transaction costs). This implies that the effective interest rate is less than 9%. II. Interest rate risk on bonds is greater the longer the time to maturity is and the lower the coupon rate. a. I only b. II only c. Both I and II d. Neither is true
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