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A 10 year, 7% bond with semiannual coupon payments, at par $1,000. a) Compute the value of the bond if the annual yield is now

A 10 year, 7% bond with semiannual coupon payments, at par $1,000.

a) Compute the value of the bond if the annual yield is now 5%.

b. If the annual yield increases to 6% from 5% now, what is the price now? What would be your return if you sold the bond now?

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