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An investor purchased a bond with a maturity of 10 years when the market rate of return for bonds with similar terms and risk was at 7.5 percent. If factors in the market cause market rates to increase - what will happen to the value of the bond purchased by this investor?

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An investor purchased a bond with a maturity of 10 years when the market rate of return for bonds with similar terms and risk was at 7.5 percent. If factors in the market cause market rates to increase - what will happen to the value of the bond purchased by this investor?






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