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Investors usually expect the price to rise in the future for a positive capital gains. However, some bond investor still buy bond knowing that he

Investors usually expect the price to rise in the future for a positive capital gains. However, some bond investor still buy bond knowing that he will realize a negative capital gains

(

the the price of the bond will drop in the future.

)

This is true when the bond is sold for a premium.

(

Premium bond

)

True

False

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