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(Solved): xl inc. has just issued new long-term debt which sold at face value and has a maturity of 3 years. i ...



xl inc. has just issued new long-term debt which sold at face value and has a maturity of 3 years. if interest rates drop over the next year, what will be the impact on the market value of the debt at the end of the year?

Select one: 

a. it will be unchanged. 

b. it will be lower than face value. 

c. there is not enough information to determine the outcome. 

d. it will be higher than face value.



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The price of the bond is inversel
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