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Bond Information: Yield: 98% Coupon Rate: 9.25% Price: $44.01 One other thing..the price you find originally will be quoted as a percentage of 1000, so

Bond Information:

Yield: 98%

Coupon Rate: 9.25%

Price: $44.01

One other thing..the price you find originally will be quoted as a percentage of 1000, so if the price is 147, that means 147% of 1000, or $1470. Use that as a comparison when evaluating price movements.

1. calculate the price of their bond assuming the interest rate (Yield to Maturity) when up by 1%, and down by 1%. How would this change your evaluation of the risk of that bond?

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