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If interest rates rise after a bond is issued, 1. the bond may be called 2. the firm may repurchase the bond 3. the current

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If interest rates rise after a bond is issued, 1. the bond may be called 2. the firm may repurchase the bond 3. the current yield exceeds the yield to maturity 4. the current yield is less than the yield to maturity a) 1 and 3 b) 1 and 4 c) 2 and 3 d) 2 and 4 If interest rates in general rise, a) the prices of existing bonds rise b) the prices of existing bonds fall the prices of matured bonds rise d) the prices of matured bonds fall The price of a bond depends on 1. the bond's coupon 2. the maturity date 3. current interest rates O a) 1 and 2 Ob) 1 and 3 c) 2 and 3 d) 1, 2, and 3

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