You just bought a 30-year zero coupon bond with a face, Ask an Expert

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You just bought a 30-year zero coupon bond with a face value of $1,000. The market interest rate is 5%. The instant after you buy the bond, the market interest rate declines to 4%. What is the percent change in the bond’s price resulting from the decline in the market rate? You need to find the price of the bond before and after the change in market rate.

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Financial Management, Finance

Category:- Financial Management
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