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One year ago, Blazer, Inc. issued 17-year bonds at par. The bonds have a coupon rate of 6 percent and pay interest annually. Today, the
One year ago, Blazer, Inc. issued 17-year bonds at par. The bonds have a coupon rate of 6 percent and pay interest annually. Today, the market rate of interest on these bonds is 8.2 percent. How does the price of these bonds today compare to the issue price (what is the percentage difference and is it higher or lower)?
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