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The JC Co issued a 5.5% coupon bond four years ago at par value. The market interest rate on comparable bonds today is 7.25%. The

The JC Co issued a 5.5% coupon bond four years ago at par value. The market interest rate on comparable bonds today is 7.25%. The JC Co bond currently pays ________ a year in interest and the bond sells at a ________.

A) $72.50; discount

B) $72.50; premium

C) $55; discount

D) $55; premium

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