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Consider a five-year, 15 percent annual coupon bond with a face value of $1,000. The bond is trading at a market yield to maturity of

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Consider a five-year, 15 percent annual coupon bond with a face value of $1,000. The bond is trading at a market yield to maturity of 12 percent. la) What is the price of the bond? b) If the yield to maturity decreases 1 percent, what will be the bond's new price? c) Using your answers to parts (a) and (b), what is the percentage change in the bond's price as a result of the 1 percent decrease in interest rates

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