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A bond with a face value of $1,000 matures in 12 years and has a 9% semiannual coupon. The bond has a current yield of
A bond with a face value of $1,000 matures in 12 years and has a 9% semiannual coupon. The bond has a current yield of 7%. Based on the information, you would expect the bond price to _____________ in one year. (Hint: Find bond price and YTM)
Select one:
a. Increase by 8.46%
b. Increase by 7.00%
c. Decrease by 1.32%
d. Decrease by 5.68%
e. Increase by 1.32%
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