The Ivanhoe Department of Transportation has issued 2 5 - year bonds that make semiannual coupon payments
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Question:
The Ivanhoe Department of Transportation has issued year bonds that make semiannual coupon payments at a rate of percent. The current market rate for similar securities is percent. Assume that the face value of the bond is $
What will be the bond's price if the rates in the market i decrease to percent or ii increase to percent? Round answers to decinmal places.
Decrease to percent $
Increase to percent $
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