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Consider a ( n ) Eight - year, 1 1 . 5 percent annual coupon bond with a face value of $ 1 , 0
Consider an Eightyear, percent annual coupon bond with a face value of $ The bond is trading at a rate of percent. a What is the price of the bond? b If the rate of interest increases 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 percent increase in interest rates? Negative value should be indicated by a minus sign. d Repeat parts b and c assuming a percent decrease in interest rates. For all requirements, do not round intermediate calculations. Round your answers to decimal places. eg tableaPrice of the bond,,bBond's new price,,cPercentage change,,dBond's new price,,Percentage change,,
Consider an Eightyear, percent annual coupon bond with a face value of $ The bond is trading at a rate of percent.
a What is the price of the bond?
b If the rate of interest increases 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 percent increase in interest rates? Negative value should be indicated by a minus sign.
d Repeat parts b and c assuming a percent decrease in interest rates.
For all requirements, do not round intermediate calculations. Round your answers to decimal places. eg
tableaPrice of the bond,,bBond's new price,,cPercentage change,,dBond's new price,,Percentage change,,
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