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Assume market interest rates have risen substantially in the 5 years since an investor purchased Treasury bonds that were offering a 6% return over their 15-year life. If the investor sells now he or she is likely to realize a total return that is:
A. greater than 6%. B. less than 6%. C. equal to 2%. D. equal to 6%.
Calculating the bond in each of the three situations: Bond at Par, Premium Bond and Zero Coupon Bond. Premium bond – a bond that sells for more than its par value. This is the
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