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You own a five-year bond with a 9% annual coupon with a face value of $1000. The YTM on the bond is 10% p.a. Which
You own a five-year bond with a 9% annual coupon with a face value of $1000. The YTM on the bond is 10% p.a. Which ONE of the following is CORRECT? a. The bond must be priced above par. b. The bond must be priced at par. c. None of the answers are correct. d. The bond must be priced at or below par, but we cannot tell which. e. The bond must be priced below par.
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