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Today, WXZ issued a 6% bond with face value of $1,000 and a 30 year maturity. The bond was issued with a price of $1010
Today, WXZ issued a 6% bond with face value of $1,000 and a 30 year maturity. The bond was issued with a price of $1010 and was rated A by Standard & Poors. Without doing any calculations, which of the following is true?
(a) the yield to maturity for this bond is determined when issued and will not change over the 30 year life
(b) the bond pays less interest than investors currently require given the risk
(c) the bond pays exactly $60 each year in interest
(d) none of the above
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