When an investor purchased a 1000 face value bond with an, Ask an Expert

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When an investor purchased a $1,000 face value bond with an annual coupon payment of $120 and a maturity years for $1, 122.89, it had a yield to maturity of 10%.

Now, one year later, with same coupon payment and face market interest rates on bonds of this kind have risen to 12%.

What does this do to the value of the bond the investor purchased?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92793780

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