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You purchased a 6 year, 8 % coupon bond at the price of $ 9 5 5 . 1 5 . You figured out that
You purchased a year, coupon bond at the price of $ You figured out that the yield to maturity of the bond is exactly which is equal to the market rate of return to similar bonds.
Instead of keeping the bond to its maturity, you plan to sell it in two years. If the market rate of return stays the same at what will happen to the price of the bond?
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