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4 suppose a coupon bond with a par value of...

Question: 4 suppose a coupon bond with a par value of...

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4. Suppose a coupon bond with a par value of $1,000 is currently priced at $950 and has a coupon of $40. Which of the following is true? A) current yield < coupon rate B) current yield> coupon rate

C) coupon rate has risen D) coupon rate has declined

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