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A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. How does the price of this bond change
A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. How does the price of this bond change if the market yield to maturity falls to 5.5 percent from the current rate of 5.7 percent?
Price drops by $18.73 | ||
Price drops by $17.56 | ||
Price goes up by $18.73 | ||
Price goes up by $17.56 | ||
Price goes up by $28.50 |
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