Bond Price
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You purchased a $1,000 five percent coupon bond that matures in 10 years.
How much would your bond be worth if interest rates fall to 4% the day after you purchase the bond? What would the bond be worth in one year if interest rates fell to 4% at that point?
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The solution explains how to calculate the change in bond price given a change in interest rates
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You purchased a $1,000 five percent coupon bond that matures in 10 years.
How much would your bond be worth if interest rates fall to 4% the day after you ...
Purchase this Solution
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