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One year ago, you purchased a 5 percent annual coupon, $1,000 par, 6-year bond for a clean price of $1,075. The bond now has 5
One year ago, you purchased a 5 percent annual coupon, $1,000 par, 6-year bond for a clean price of $1,075. The bond now has 5 years remaining until maturity. Today, the yield to maturity on this bond is 4 percent. How does today's price of this bond compare to your purchase price?
35.30 higher | ||
$30.48 lower | ||
$40.40 lower | ||
$25.31 higher |
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