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Please provide a detailed explanation to the questions below: 1. If you were to purchase a 12% bond when the market interest rate for such

Please provide a detailed explanation to the questions below:

1. If you were to purchase a 12% bond when the market interest rate for such bonds was 11%, would you expect to pay more or less than the face amount for the bond?

2. If you were to purchase a 12% bond when the market interest rate for such bonds was 13%, would you expect to pay more or less than the face amount for the bond?

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