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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 $1000
Coupon rate8% per year
Payment schedule semiannual
Maturity5 years.
Consider a corporate bond with the characteristics listed above. Assume that your required rate of return on this bond is 9.5% per year, compounded semiannually. With this required rate of return:
A.
the value of the bond will be equal to $1000.
B.
the value of the bond will be less than $1000.
C.
the value of the bond will be greater than $1000.
D.
the value of the bond will be equal to par.
E.
both A and D are true.

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