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Suppose a Government of Canada Bond Is Being Offered in Financial

Question 21

Multiple Choice

Suppose a Government of Canada bond is being offered in financial markets at a price that is lower than its present value.We can expect that


A) the lack of demand for this bond will cause its present value to fall.
B) the price of the bond will fall further.
C) the relatively high demand for this bond will cause its price to rise.
D) the face value of the bond will be adjusted to a lower value.
E) the face value of the bond will be adjusted to a higher value.

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