Six years ago, Carl purchased an 8% coupon bond that had 10 years to maturity for $1,150. Since the bond purchase, the required return on the bond has remained constant. If Carl sells the bond now, the price he receives for the bond will be:
A) $1,150.
B) between $1,000 and $1,150.
C) higher than $1,150.
D) less than $1,000.
Correct Answer:
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