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There is a risk of loss associated with selling bonds before the maturity date. A funds manager is holding 10-year bonds with a current value

There is a risk of loss associated with selling bonds before the maturity date. A funds manager is holding 10-year bonds with a current value equal to the face value of $100,000. The bonds pay a fixed annual coupon of 8 per cent per annum. Interest rates for similar types of bonds increase to 9 per cent per annum. Calculate the new value of the bonds.

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