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A $ 1 , 0 0 0 bond has a coupon of 5 percent and matures after 8 years. Assume that the bond pays interest
A $ bond has a coupon of percent and matures after years. Assume that the bond pays interest annually. If interest rates increase basis points that is from percent to percent what are the new prices of both bonds assuming annual compounding? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. Bond part a : $ Bond part b : $ Calculate the percentage change in the price of each bond. Round your answers to one decimal place. Enter your answers as a positive value. Bond part a : Selectincrease or decrease of Bond part b : Selectincrease or decrease of Interest Factors for the Present Value of One Dollar TimePeriodegyearInterest Factors for the Present Value of an Annuity of One Dollar g ZZg A b A Bgg
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A $ bond has a coupon of percent and matures after years. Assume that the bond pays interest annually.
If interest rates increase basis points that is from percent to percent what are the new prices of both bonds assuming annual compounding? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.
Bond part a : $
Bond part b : $
Calculate the percentage change in the price of each bond. Round your answers to one decimal place. Enter your answers as a positive value.
Bond part a :
Selectincrease or decrease
of
Bond part b :
Selectincrease or decrease
of
Interest Factors for the Present Value of One Dollar
TimePeriodegyearInterest Factors for the Present Value of an Annuity of One Dollar g ZZg A b A Bgg
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