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If a Bond Investor Pays $1030 for an Annual Coupon

Question 42

Multiple Choice

If a bond investor pays $1030 for an annual coupon bond with a face value of $1000,it follows that:


A) the coupon rate is higher than the current market yield.
B) the current market yield and coupon rate are equal.
C) the current market yield is higher than the coupon rate.
D) not enough information is given to compare the coupon rate and current market yield.

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