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A 10-year coupon bond with a $5,000 face value has an interest rate of 12% APR. The coupon rate is 8% and the payments are

A 10-year coupon bond with a $5,000 face value has an interest rate of 12% APR. The coupon rate is 8% and the payments are semiannual. What would be the change in the bonds value if the 10-year interest rate were to drop by 1%. Select one:

a. increase by 313.23

b. decrease by 313.23

c. decrease by 250.71

d. increase by 250.71

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