Calculate the price of the 30-year, 8% coupon bond if the market interest rate falls from 4%

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Calculate the price of the 30-year, 8% coupon bond if the market interest rate falls from 4% to 3% per half-year.

Compare the capital gain when the interest rate falls from 4% to 3% to the loss incurred when the rate increases from 4% to 5%.

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ISE Investments

ISBN: 9781260571158

12th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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