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Consider a 2 0 - year zero - coupon bond with a face value of $ 1 , 0 0 0 . The yield to

Consider a 20-year zero-coupon bond with a face value of $1,000. The yield to maturity for the bond is 8%. Calculate the price of the bond, and how it would change if interest rates on the financial markets decreased.
A. The current price is $201.65 and it would increase following the expected change in interest rates.
B. The current price is $201.65 and it would decrease following the expected change in interest rates.
C. The current price is $214.55 and it would increase following the expected change in interest rates.
D. The current price is $214.55 and it would decrease following the expected change in interest rates.
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