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2. A bond which matures in 5 years has a par value of $10000 and a coupon rate of 5% payable semiannually. The market interest

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2. A bond which matures in 5 years has a par value of $10000 and a coupon rate of 5% payable semiannually. The market interest rate is 3%. What is its price? 3. Explain the difference between a new-issue bond and an outstanding bond. Suppose in question 2. that the market interest rate increases to 8%. Without computing the price, how should the price move? Why

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