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Which of the following is correct? If you pay a price above its face value to buy a bond, your return will be higher than
Which of the following is correct? If you pay a price above its face value to buy a bond, your return will be higher than its coupon rate. When market rate is greater than coupon rate, the bond has a price below its face value. o When determining the value of a bond that payments semi-annual payments, one need to use semi-annual coupon rate to determine the coupon payments and semi-annual market rate as discount rate
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