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you own a $1,000 Bond issued by Target that will mature in ten years. It carries a coupon (interest) rate of 4.00%. You have decided,

you own a $1,000 Bond issued by Target that will mature in ten years. It carries a coupon (interest) rate of 4.00%. You have decided, however, that you want to sell this Bond to create some liquidity. You note that bonds with similar risk profiles are now being offered at a coupon (interest) rate of 2.50%. Required: Will this Bond sell for a Premium or a Discount? Why? Calculate the sales price of the Bond. Show your work.

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