(Answered) What is the value of a 10-year 1000 par value bond with a

Finance

What is the value of a 10-year, $1000 par value bond with a 10% annual coupon if its required rate of return is 10%?

What would be the value of the bond if just after it had been issued, the expected inflation rate rose by 3 percentage points, causing investors to require a 13% return? Would we now have a discount or a premium bond?

What would happen to the value of a 10-year bond over time if the required rate of return remained at 13%? If it remained at 7%?

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