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What would happen to the bonds value if inflation fell and declined to 7%? Would we now have a premium or a discount bond? (answer
What would happen to the bonds value if inflation fell and declined to 7%? Would we now have a premium or a discount bond? (answer with using the question below)
( question B pertaining to the question above
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How is the value of a bond determined? What is the value of a 10-year, $1,000 par value bond with a 10% annual coupon if its required rate of return is 10%?)
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