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Holly Cow Inc. bonds mature in 14 years and have a coupon rate of 7 percent. If the market interest rate increases, then the: yield

Holly Cow Inc. bonds mature in 14 years and have a coupon rate of 7 percent. If the market interest rate increases, then the:

  • yield to maturity will be less than the coupon rate.

  • current yield will decrease.

  • market price of the bond will decrease.

  • coupon payment will increase.

  • coupon rate will also increase

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