What type of option does the investor in this bond have

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If a bond is putable, what type of option does the investor in this bond have? Suppose a bond has a market price of $90 and has five years remaining to maturity.

If the bond is priced to yield 5%, is its coupon rate greater than, less than, or equal to 5%? Explain your reasoning.

Reference no: EM131312831

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