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Suppose that you are considering investing in a four-year bond that has a face value of $1,000 and a coupon rate of 5.2%. a.) If
Suppose that you are considering investing in a four-year bond that has a face value of $1,000 and a coupon rate of 5.2%. a.) If the market interest rate on similar bonds is 5.2%, the price of the bond is $ 1000 . (Round your response to the nearest cent.) The bond's current yield is 5.2 %. (Round your response to two decimal places.) b.) Suppose that you purchase the bond, and the next day the market interest rate on similar bonds falls to 4.2%. The price of the bond will be $ . (Round your response to the nearest cent.)
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