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Posted on Sep 02, 2024

A bond has a par value of $1,000, 5 years to maturity, and a coupon rate of 4.49%? Assume that coupon payments are made semiannually.

If the required rate of return is 5.20%, what is the value of this bond? What is the bonds value if the required rate of return increases to 6.20%? What is the bonds value if the required rate decreases to 4.20%?

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