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You have the following bond maturing in 4 years: Face Value = 1.000$; Semiannual dividends = 30$; Annual Interest rate= 4% 1. Compute the PV
You have the following bond maturing in 4 years: Face Value = 1.000$; Semiannual dividends = 30$; Annual Interest rate= 4% 1. Compute the PV of the cash flows? 2. What will happen to the bond price if the interest rate increases to 6%?
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