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The Wake-Up Corporation's $1,000 bonds issued a year ago have an 8 percent coupon. Now the prevailing market yield is 10 percent. In this case,
The Wake-Up Corporation's $1,000 bonds issued a year ago have an 8 percent coupon. Now the prevailing market yield is 10 percent. In this case, Wake-Up's bonds will Select one: a. have a market price of less than $1,000. b. remain unaffected by the change in market yield, and will continue to trade at $1,000. c. have a market price of greater than $1,000. d. have a new 2 - percent coupon issued to raise the yield to the market yield.
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