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An Omani Government zero-coupon bond with a par value of $5,000 matures in 10 years. At what price would this bond provide a yield to

  1. An Omani Government zero-coupon bond with a par value of $5,000 matures in 10 years. At what price would this bond provide a yield to maturity that matches the current market rate of 5 percent?

  1. What happens to the price of this bond if interest rates fall to 4 percent?

  1. Given the above changes in the price of the bond and the interest rate, calculate the bond price elasticity.

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