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Suppose a mutual fund that invests in bonds purchased a bond when its yield to maturity was lower than the coupon rate. The investor should

Suppose a mutual fund that invests in bonds purchased a bond when its yield to maturity was lower than the coupon rate. The investor should expect the bond's price to?

1. be less than the face value at maturity

2. increase over time, reaching par value at maturity

3. exceed the face value at maturity.

4. decline over time, reaching par value at maturity.

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