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A bond fund manager makes a forecast that she believes will be accurate about interest rates in five years. She forecasts that 10-year bonds will
A bond fund manager makes a forecast that she believes will be accurate about interest rates in five years. She forecasts that 10-year bonds will yield 8% five years from now. Currently, a 15-year bond pays interest once per year of 6% sells for price of $867.42. If the fund managers prediction is correct, what will the bonds price be five years from now in dollars and cents. (Use a financial calculator or Excel to solve this.)
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