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You bought a bond one year ago for $1,070.85.This bond pays a semi-annual coupon at the rate of 8.4% and matures 19 years from today.What
You bought a bond one year ago for $1,070.85.This bond pays a semi-annual coupon at the rate of 8.4% and matures 19 years from today.What is the percentage change in price from last year until today if interest rate have fallen and a fair yield for this bond is now 7.2%?
(a) + 10.34%
(b) +4.89%
(c) -17.16%
(d) +4.66%
(e) -4.66%
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