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Par value $ 1 0 0 0 Coupon rate 8 % per year Payment schedule semiannual Maturity 5 years. Consider a corporate bond with the
Par value $
Coupon rate per year
Payment schedule semiannual
Maturity years.
Consider a corporate bond with the characteristics listed above. Assume that your required rate of return on this bond is per year, compounded semiannually. With this required rate of return:
A
the value of the bond will be equal to $
B
the value of the bond will be less than $
C
the value of the bond will be greater than $
D
the value of the bond will be equal to par.
E
both A and D are true.
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