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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 year zerocoupon bond with a face value of $ The yield to maturity for the bond is Calculate the price of the bond, and how it would change if interest rates on the financial markets decreased.
A The current price is $ and it would increase following the expected change in interest rates.
B The current price is $ and it would decrease following the expected change in interest rates.
C The current price is $ and it would increase following the expected change in interest rates.
D The current price is $ and it would decrease following the expected change in interest rates.
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