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QUESTION 7 Suppose we have a 3-year coupon bond with a face value of $1,000 with a coupon rate of 5%, that we bought for

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QUESTION 7 Suppose we have a 3-year coupon bond with a face value of $1,000 with a coupon rate of 5%, that we bought for $1,075 and sold 1 year later for $1,055. The market interest rate is 4.5%. Which of the following would be true if this were a callable bond? Investors would require a greater coupon rate in order to buy this bond if a non-callable bond could be purchased that had the same level of O risk O B. Investors would be willing to accept a lower coupon rate since it is callable. OC. If market interest rates increase, this bond is likely to get called. O D. All of the above QUESTION 7 Suppose we have a 3-year coupon bond with a face value of $1,000 with a coupon rate of 5%, that we bought for $1,075 and sold 1 year later for $1,055. The market interest rate is 4.5%. Which of the following would be true if this were a callable bond? Investors would require a greater coupon rate in order to buy this bond if a non-callable bond could be purchased that had the same level of O risk O B. Investors would be willing to accept a lower coupon rate since it is callable. OC. If market interest rates increase, this bond is likely to get called. O D. All of the above

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