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Please answer both questions thank you! 33. Bonds that sell for much less than face value and pay no coupon interest are called: A) original
Please answer both questions thank you!
33. Bonds that sell for much less than face value and pay no coupon interest are called: A) original issue discount bonds. B) deep discount bonds. C) pure discount bonds. D) zero coupon bonds. E) All of the above. 34. The Corner Grocer has a 7-year, 6 percent annual coupon bond outstanding with a $1,000 par value. The bond has a yield to maturity of 5.5 percent. Which one of the following statements is correct if the market yield suddenly increases to 6.5 percent? A) The bond price will increase by $57.14. B) The bond price will increase by 5.29 percent. C) The bond price will decrease by $53.62. D) The bond price will decrease by 5.43 percent. E) The bond price will decrease by 5.36 percent Step by Step Solution
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