Part I

Shaili bought a bond from Penny’s Pickles, Inc at par value ($1000) with a coupon rate of 6% and a maturity date 10 years in the future. If interest rates are currently 3.5%, and Shaili sold the bond today, would she expect to get more than, less than, or equal to $1000 for it? At her bond’s maturity date, interest rates are 6.5%. ................
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