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Business, 07.04.2020 21:33 angellynn50

A 30-year 7% corporate bond was issued exactly 10 years ago. You purchased this bond today, when it was trading to yield 9%. Tomorrow, the yield decreased down to 6%, only to increase to 11% after 10 years. At maturity, the bond’s realized yield must be equal to 7%.

A. True
B. False

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