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A 20-year bond with a face value of $1,000 currently sells for $1,050. One year later, if interest rates have not changed: (you can always
A 20-year bond with a face value of $1,000 currently sells for $1,050. One year later, if interest rates have not changed: (you can always do the math)
The bonds price will still be exactly $1,050. | ||
The bonds price will still be slightly more. | ||
The bonds price will still be slightly less. | ||
The bonds price will still be significantly more, (say $50 more). | ||
The bonds price will still be significantly less, (say $50 less). |
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