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ow suppose you purchase a 3 - year bond with face value of $ 1 0 0 0 , a 7 % annual coupon, and

ow suppose you purchase a

3 -

year bond with face value of $

1000,

7 %

annual

coupon, and a price of $

975 .

Is the yield of this bond to maturity greater or less

than for the bond above?

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