Question
Use the bond term's below to answer the question Maturity 6 years Coupon Rate 3% Face value $1,000 Annual Coupons When you buy the bond
Use the bond term's below to answer the question
Maturity 6 years
Coupon Rate 3%
Face value $1,000
Annual Coupons
When you buy the bond the interest rate is 5%
Right after you buy the bond, the interest rate changes from 5.00% to 4.00% and remains there.
What is the price effect in year 3?
Group of answer choices
$26.71
$24.29
$22.08
$27.93
$29.39
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
