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You buy a bond today for 1 0 0 . Tommoorow, someone comes along and offers tonpurxhase the bond for 8 5 . What does

You buy a bond today for

100 .

Tommoorow, someone comes along and offers tonpurxhase the bond for

85 .

What does this imply about their risk premium relative to your risk premium? If the bond has a

10

coupon, what is the current yield?

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