Assume 1 year has gone by and it is now jan 1 2012 further, Ask an Expert

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Assume 1 year has gone by and it is now Jan 1, 2012. Further assume you bought the bond for the price calculated in question 2 (Bond price $973.27) on Jan 1, 2011. Since then, market interest rates (and the discount rate) for this type of bond increase to 8%. What would be the new market price of the bond on Jan1, 2012?

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Financial Management, Finance

Category:- Financial Management
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