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Round Dot Inns Is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The bonds
Round Dot Inns Is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The bonds will mature In 10 years and will be sold at par. Given this, which one of the following statements Is correct? The bonds will sell at a premium if the market rate is 5.5 percent. The bonds will become discount bonds if the market rate of interest declines. The bonds will pay 10 interest payments of $60 each. The bonds will initially sell for $1,030 each. The final payment will be in the amount of $1,060
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