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    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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    https://brainmass.com/business/bond-valuation/bond-price-222362

    Solution Preview

    Please see the attached file.

    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 ...

    Solution Summary

    The solution explains how to calculate the change in bond price given a change in interest rates

    $2.19

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