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.28 A four-year, 5.8 percent coupon bond is selling to yield 7 percent. The bond pays interest annually. One year later, interest rates decrease from
.28 A four-year, 5.8 percent coupon bond is selling to yield 7 percent. The bond pays interest annually. One year later, interest rates decrease from 7 percent to 6.2 percent. (a) What is the original price of the bond? (b) What is the bond's price one year later, assuming the yield is unchanged at 7 percent? (c) What is the bond's price one year later with the yield change? (d) Complete the following: Price change attributable to moving to maturity Price change
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