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POTENTIAL INFORMATION NEEDED TO COMPLETE (E &F )

e. How would the price of the bond be affected by changing the going market interest rate? (Hint: Conduct a sensitivity analysis of price to changes in the going market interest rate for the bond. Assume that the bond will be called if and only if the going rate of interest falls below the coupon rate. That is an oversimplification, but assume it anyway for purposes of this problem.) 8% Nominal market rate, r: Value of bond if it's not called: Value of bond if it's called: The bond would not be called unless r