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A bond has a face value of $ 1 , 0 0 0 , has 5 years until maturity, and an annual coupon rate of

A bond has a face value of $

1, 000,

has

5

years until maturity, and an annual coupon rate of

7 % ?

It yields

5 %

currently By how much will the price change over the next year if the yield remains constant?

Multiple Choice

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