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5. Frank bought a bond for $1,000 with a coupon rate of 5%. Shortly after he bought it, the market interest rate dropped to 4%.

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5. Frank bought a bond for $1,000 with a coupon rate of 5%. Shortly after he bought it, the market interest rate dropped to 4%. He is confused about how this will affect the value of his bond. Write a few sentences explaining whether his bond is now worth more or less than $1,000, and why

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