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Consider a 5-Year Bond with a 10% Coupon That Has

Question 79

Multiple Choice

Consider a 5-year bond with a 10% coupon that has a present yield to maturity of 8%.If interest rates remain constant,one year from now the price of this bond will be _______.


A) higher
B) lower
C) the same
D) cannot be determined
E) $1,000

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