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Consider a 7-Year Bond with a 9% Coupon and a Yield

Question 79

Multiple Choice

Consider a 7-year bond with a 9% coupon and a yield to maturity of 12%. If interest rates remain constant, 1 year from now the price of this bond will be ________.


A) higher
B) lower
C) the same
D) indeterminate

Correct Answer:

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