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Jane Austin purchased a 20-year bond at par value when it was initially issued six years ago. The bond has an annual coupon rate of
Jane Austin purchased a 20-year bond at par value when it was initially issued six years ago. The bond has an annual coupon rate of 4.50% and a par value of $1000. The bond's yield to maturity is 6.15%. Given the bond's yield ot maturity, this bond will sell at _______. Assuming no change in market interest rates, the bond will present Jane with capital ________ as it matures.
a. premium; gains
b. discount; gains
c. premium; losses
d. discount; losses
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