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You purchase a $1000 par value bond with 15 years to maturity, paying a semiannual coupon of 7.5%. The yield to maturity (annual yield) on
You purchase a $1000 par value bond with 15 years to maturity, paying a semiannual coupon of 7.5%. The yield to maturity (annual yield) on bonds with comparable risk is 7%. You hold this bond and sell it 5 years later when the yield to maturity (annual yield) on bonds with comparable risk is 10%. What is the change in bond price over the five years?
Group of answer choices
a. 140.82
b. -201.76
c. -59.73
d. 0
e. -531.10
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