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You have the opportunity to purchase a bond with coupon payments of $75/year and a face value of $1,000. If the markets required rate of
You have the opportunity to purchase a bond with coupon payments of $75/year and a face value of $1,000. If the markets required rate of return on similar bonds is 7.5%. This bond:
(a) should sell at a slight discount
(b) should sell at a slight premium
(c) should sell at its par value
(d) is unattractive compared to other bonds bearing the same risk
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