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A bond that pays interest annually has a 8 . 8 5 % YTM and a price of $ 9 4 4 . 3 5
A bond that pays interest annually has a YTM and a price of $ The company intends to do a secondary equity offering and as such, the riskiness of the bonds will fall. The YTM on the bond is expected to fall by basis points. The bond's duration is years. What is the predicted new bond price after the interest rate change? Watch your rounding
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