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Yudug purchased a government bond that has five (5) years to mature. The coupon interest rate of this bond is 8 % The coupons are
Yudug purchased a government bond that has five (5) years to mature. The coupon interest rate of this bond is 8 % The coupons are paid semi-annually. The face value of this bond is 10,000 ADE. If Yusuf borrows the money to buy the bond and the interest rate charged is 6%, calculate the following The price of the bond. Discuss (on calculation) what will happen to the price of the bond when the interest rate decreases
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