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A 1 0 - year Treasury bond pays 4 % interest semi - annually and has a par value of $ 1 , 0 0

A 10-year Treasury bond pays 4% interest semi-annually and has a par value of $1,000. The yield to maturity is 6%. If the yield to maturity declines to 5%, what will happen to the market price of the bond?
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Price decreases by $72.
Price decreases by $50.12
Price increases by $45.98
Price increases by $70.83.

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