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1. Calculate the change in price the bond will experience. Bond Prices and Interest Rate Changes - Excel FORMULAS DATA REVIEW VIEW % 4

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1. Calculate the change in price the bond will experience. Bond Prices and Interest Rate Changes - Excel FORMULAS DATA REVIEW VIEW % 4 Alignment Number Conditional Format as Cell Formatting Table Styles Cells Editing F Styles FILE HOME INSERT PAGE LAYOUT Calibri 11 ' ' Paste Clipboard A1 BIU *] Font fx 3 4 A B Sign In D E F G H J A 6.50 percent coupon bond with ten years left to maturity is priced to offer a 8.0 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.0 percent. What is the change in price the bond will experience in dollars? (Do not round intermediate calculations and round your final answer to 2 decimal places.) 10 11 12 565822995292 20 7 Coupon rate Maturity Present YTM Expected YTM in 1 year 6.50% 10 8.0% 7.0% 13 14 15 16 17 Complete the following analysis. Do not hard code values in your calculations. Current price Expected price in 1 year 18 Change in price 19 Sheet1 READY Attempt(s) B ++ 100% Hint

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