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Part 1.A 12-year, 7% coupon bond pays interest annually. The bond has a face value of $1,000. What is the percentage change in the price

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Part 1.A 12-year, 7% coupon bond pays interest annually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield decreases to 6% from the current rate of 8%? Interpret. (5 marks) 2. QAV Group wants to issue ninety 10 year, $1.000 xero-coupon bonds. If each bond is to yield 6%, how much will QAV receive when the honds are first sold? (5 marks) be five years from now

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