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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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