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Show your math to receive credit: Suppose that you have just bought a four-year $10,000 coupon bond with a coupon rate of 7% when the
Show your math to receive credit: Suppose that you have just bought a four-year $10,000 coupon bond with a coupon rate of 7% when the market interest rate is 7%. Immediately after you buy the bond, the market interest rate falls to 5%. What happens to the value of your bond? a. At the initial interest rate of 7%, the bond's value is: b. At an interest rate of 5%, the bond's value is: C. The bond's value (has risen/has fallen) by $__
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