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rjkz [21]
3 years ago
12

Consider a(n) Five-year, 14 percent annual coupon bond with a face value of $1,000. The bond is trading at a rate of 11 percent.

a. What is the price of the bond? b. If the rate of interest increases 1 percent, what will be the bondâs new price? c. Using your answers to parts (a) and (b), what is the percentage change in the bondâs price as a result of the 1 percent increase in interest rates? (Negative value should be indicated by a minus sign.) d. Repeat parts (b) and (c) assuming a 1 percent decrease in interest rates.
Business
1 answer:
Natasha2012 [34]3 years ago
4 0

Answer:

i will help u in a bit

Explanation:

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