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Think about the price of a bond that pays an annual coupon and has 10 years left to maturity. The coupon rate is 8.2% and
Think about the price of a bond that pays an annual coupon and has 10 years left to maturity. The coupon rate is 8.2% and the required rate of return for bonds of similar risk is 6.7%. The bonds par value is $1,000. Is the price of a bond greater than $1,000? Do not calculate the price of the bond!
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