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Two years ago you invested in a 6% coupon bond payable annually (face value is 1000 euro) when the market interest rate was 5.5%. At
Two years ago you invested in a 6% coupon bond payable annually (face value is 1000 euro) when the market interest rate was 5.5%. At the time of purchase the bond had remaining maturity if 5 years. Now the interest rate is 6.6% and you want to sell the bond after receiving the second coupon payment. Which of the following statements are correct?
Select one or more:
a. The sales price now is 984 euro
b. The price at the date of purchase was 1023 euro
c. The sales price now is 1023 euro
d. The price at the date of purchase was 984 euro
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