A multinational company has issued a 10-year, $1,000 zero-coupon bond to yield 10 percent. (a) What is

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A multinational company has issued a 10-year, $1,000 zero-coupon bond to yield 10 percent.

(a) What is the initial price of the bond?

(b) If interest rates dropped to 8 percent immediately upon issue, what would be the price of the bond?

(c) If interest rate rose to 12 percent immediately upon issue, what would be the price of the bond?

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