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Assume you buy a bond with the following features Bond maturity Coupon Rate- Face Value- Annual Coupons 4 6.00% $1,000 When you buy the bond
Assume you buy a bond with the following features Bond maturity Coupon Rate- Face Value- Annual Coupons 4 6.00% $1,000 When you buy the bond the market interest rate 4.00% Immediately after you buy the bond the interst rate changes to 3.00% What is the "price risk" effect in year 3? -$10.19 $9.60 O-$9.90 -$9.60 O $10.19 $9.90
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