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4 . A bond has a market price of $ 1 , 0 0 0 , a $ 1 , 0 0 0 face value,

4 .

A bond has a market price of $

1, 000,

a $

1, 000

face value, a

10 %

coupon rate paid annually, a required rate of return of

10 %,

and

30

years until maturity. If the required rate of return immediately increased to

13 %,

what is the new market price of the bond?

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