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You buy a 9 percent, 20-year, $1,000 par value floating rate bond in 1999. By the year 2004, rates on bonds of similar risk are

You buy a 9 percent, 20-year, $1,000 par value floating rate bond in 1999. By the year 2004, rates on bonds of similar risk are up to 11 percent.

What is your one best guess as to the value of the bond?

The answer is not 956!!!

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