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Suppose a firm decides to issue 20-year bonds with a par value of $1,000 and annual 12% coupon interest rate. Now, interest rates fall immediately

Suppose a firm decides to issue 20-year bonds with a par value of $1,000 and annual 12% coupon interest rate. Now, interest rates fall immediately after the issuance of bonds. What would happen to the bonds intrinsic value? Select one: a. The bond will be called now b. The bond will be sold at par c. The bond will become riskier now d. The price will drop too e. The price will increase

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