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Suppose that you are considering investing in a four-year bond that has a par value of $1,000 and a coupon rate of 6%.

Now suppose that two years have gone by since you bought the bond and that you have received the first two coupon payments. At this point, the market interest rate on similar bonds unexpectedly rises to 10%. How much would another investor be willing to pay for your bond?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91725992

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