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The market price of a bond increases when the: Coupon is paid annually rather than semiannually. Discount rate decreases. Par value decreases. Coupon rate decreases.

The market price of a bond increases when the:

  • Coupon is paid annually rather than semiannually.

  • Discount rate decreases.

  • Par value decreases.

  • Coupon rate decreases.

  • Face value decreases.

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