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Suppose a mutual fund that invests in bonds purchased a bond when its yield to maturity is higher than the coupon rate. The investor
Suppose a mutual fund that invests in bonds purchased a bond when its yield to maturity is higher than the coupon rate. The investor should expect the bond's price to: increase over time, reaching par value at maturity. decline over time, reaching par value at maturity. exceed the face value at maturity. be less than the face value at maturity. A stock is expected to return 9% in a normal economy, 15 % if the economy booms, and lose 8% if the economy moves into a recessionary period. Economists predict a 67% chance of a normal economy, a 23% chance of a boom, and a 10% chance of a recession. The expected return on the stock is, %.
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