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MOV Testion 5 Mondelez International Inc. just issued a corporate bond with annual coupon rate of 2.725% and 20 years to maturity. Mondelez makes coupon
MOV Testion 5 Mondelez International Inc. just issued a corporate bond with annual coupon rate of 2.725% and 20 years to maturity. Mondelez makes coupon payment twice a year. The bond has a yield to maturity of 5325% Which of the following statements is correct? a. If market interest rates decline, the price of the bond will also increase b. The bond is currently selling at a price above its par value, c Investor's coupon income per payment period is determined by the product of 5.325% and the market price of the bond. d. If market interest rates remain unchanged, the band's price next year will be higher than it is today
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