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Consider a bond issue with a total par value of $1,000. The bond has exactly 16 years remaining until maturity and offers a coupon rate
Consider a bond issue with a total par value of $1,000. The bond has exactly 16 years remaining until maturity and offers a coupon rate is 5.5% with interest paid semiannually. The bond issue is currently trading at a price to yield 11.8%. If changes in market interest rates cause the bond's yield to maturity to change to 9.6%, what will be amount of the bond's change in price?
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