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Shield Company Limited sold an issue of bonds with a 10-year maturity, $2,000 par value, a 10% coupon rate, and semi-annual interest payments. Suppose that

Shield Company Limited sold an issue of bonds with a 10-year maturity, $2,000 par value, a 10% coupon rate, and semi-annual interest payments.

Suppose that 2 years after the issue date (as in part a) interest rates fell to 6% for the next 8 years.

(A) What would happen to the price of the bonds over time?

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