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While eating lunch at your position in the investment bank you decide to complete the following work. A bond has a par value of $1000

While eating lunch at your position in the investment bank you decide to complete the following work. A bond has a par value of $1000 with a 7.05% coupon rate. The required return is 6.05%. The maturity is 5 years with a annual interest payment.

What is the bonds If the value? Show work! If using Excel-show the formula with data listed.
What occurs to the value of this instrument if the required return increases? Why?

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