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Value of a bond): Calculate the annual coupon value is 7%, and the investor requires a rate of return of 10%. bond that matures in
Value of a bond): Calculate the annual coupon value is 7%, and the investor requires a rate of return of 10%. bond that matures in 10 years and has a "face value" of $ 1,000. The interest rate a. Calculate the value of the bond at the 10% yield ratio b. Find the value of the bond if the rate of return is 5% C. Find the value of the bond if the rate of return is 7% d. Compare the results in de c. Explain in terms of the relationship of the bond price and interest rates.
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