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A five-year corporate bond paying an annual coupon of 8 is

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Reference no: EM13568751

A five-year corporate bond paying an annual coupon of 8% is sold at a price reflecting a yield to maturity of 6%. One year passes and the interest rates remain unchanged. Assuming a flat term structure and holding all other factors constant, the bond's price during this period will have

A. Increased

B. Decreased

C. Remained constant

D. Cannot be determined with the data given

Reference no: EM13568751

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