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If you own a zero coupon bond that is that will pay $100,000 in 5 years and market interest rates for similar bonds fall from
If you own a zero coupon bond that is that will pay $100,000 in 5 years and market interest rates for similar bonds fall from 8% to 6%, what happens to the value of your bond?
The value will increase by $13,110.25
The value will decrease by $13,110.25
The value will not change
The value will decrease by $6,667.50
The value will increase by $6,667.50
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