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Ex7-5: Using following information, calculate the impact of one percent increase in market interest rate on the bond price. Financial Term Today One year

Ex7-5: Using following information, calculate the impact of one percent increase in market interest rate on the bond price. Financial Term Today One year later Market interest rate 3% 4% Coupon rate 3% 3% (semi-annual payment) Face value $1,000 $1,000 Maturity 10 years ? Price ? ? YTM 3% ?

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