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(a) A 5-year bond trading at par with a 10% coupon will change in price by what percentage if the yield-to-maturity changes to 11%? (Provide
(a) A 5-year bond trading at par with a 10% coupon will change in price by what percentage if the yield-to-maturity changes to 11%? (Provide an answer to the change in price in one decimal place and olace and assume a face value of 100)(b) Is the bond trading at a discount, premium or par? (C) Describe the relationship between yields and prices of bonds.
(b) Is the bond trading at a discount, premium or par?
(C) Describe the relationship between yields and prices of bonds.
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