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QUESTION

Assistance needed urgently a. What is the market price of a 5 year bond with a face value of $1000 and a 4% coupon rate if the market interest rate

Assistance needed urgently

a. What is the market price of a 5 year bond with a face value of $1000 and a 4% coupon rate if the market interest rate is also 4%?

b. If the market rate increase to 5%, what is the new market price of the bond?

c. If the market rate drops to 3%, what is the new market price of the bond?

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