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Bond Features Maturity (years) = 7 Face Value = $1.000 Starting Interest Rate 5% Coupon Rate = 4% Coupon dates (Annual) If interest rates change

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Bond Features Maturity (years) = 7 Face Value = $1.000 Starting Interest Rate 5% Coupon Rate = 4% Coupon dates (Annual) If interest rates change from 5% to 5.39% immediately after you buy the bond today (and stay at the new interest rate), what is the price effect in year 2? State your answer to the nearest penny (e.g. 48.45) If there is a loss, state your answer with a negative sign (0.g.-52.30)

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