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The last bond issued by the Borg Face Plate Manufacturing Company was a series of $1,000 face value bonds which paid an 8.5% coupon. These

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The last bond issued by the Borg Face Plate Manufacturing Company was a series of $1,000 face value bonds which paid an 8.5% coupon. These bonds have a maturity date 5 years from today and make semi-annual payments. They currently have a yield to maturity of 12.34%. What will happen to the price of the bond if the market interest rate suddenly decreases to 7.41% ? Select one: The bond price will increase but still trade at a discount. The bond price will increase and trade at a premium. The bond price will remain unchanged. The bond price will decrease but still trade at a premium. The bond price will decrease and trade at a discount

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