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You own a 5 year bond with a face value of $1000 and have a coupon rate of 10% with annual rate payments. The bond is currently worth $1150.
You own a 5 year bond with a face value of $1000 and have a coupon rate of 10% with annual rate payments. The bond is currently worth $1150. If market interest rates remain unchanged, what will be the value of the bond when there are only 4 years left until maturity.