Question: Consider a 20-year maturity bond with par value $1000 aras a 6.5% coupon rate. Suppose the current market yield is 5%. Select a true statement

Consider a 20-year maturity bond with par value $1000 aras a 6.5% coupon rate. Suppose the current market yield is 5%. Select a true statement about the bond's market price. The bond will trade at a discount The bond will trade at par value The bond will trade at a premium Impossible to determine

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