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Ten year Treasury notes currently yield 5.266%. If an investor bought a 10 year Treasury today with a $1000 par value and a coupon of

Ten year Treasury notes currently yield 5.266%. If an investor bought a 10 year Treasury today with a $1000 par value and a coupon of $50 a year, how much would he pay for it? If a year from now rates rise to 7%, how much will this Treasury note be worth now? (Remember it now has 9 years to maturity.) Did the investor make money? Explain your answer.

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