Market value of the first bond

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Suppose a 10-year, 6% coupon bond is issued, and one year later similar bonds are issued paying 5.85% coupons. What will happen to the market value of the first bond?

A. The first bond's value will rise slightly

B. The first bond's value will fall slightly

C. The first bond's value will fall very much

D. Since it is a 10-year bond, its maturity is not long enough for the value to change.

Reference no: EM133116688

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