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Croft Inc, bonds have a par value of $1000. The bonds have a 4% coupon rate and will mature in 10 years. Assume the bond

Croft Inc, bonds have a par value of $1000. The bonds have a 4% coupon rate and will mature in 10 years. Assume the bond is semi-annual.

A) calculate the price if the yield to maturity on the bonds is 7, 8 and 9 percent respectively.

B) Explain the impact on price if the required rate of return decreases.

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