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QUESTION 12 Nike has a 4% coupon bond with a face value of $1,000 available for purchase that has 10 years remaining until maturity. Nike
QUESTION 12 Nike has a 4% coupon bond with a face value of $1,000 available for purchase that has 10 years remaining until maturity. Nike can issue a new 10 year bond today at an interest rate / coupon of 2.95%. Assuming markets are efficient, would you expect the 4% coupon bond to be trading below $1,000? Yes No
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