A 10-year remaining maturity 6 coupon rate bond is selling


A 10-year remaining maturity 6% coupon rate bond is selling to yield 6%. The bond pays interest semi-annually. The par value of this bond is $1,000.

What is the price of this bond one year later assuming the yield increased to 8%?

What is the price of this bond one year later if the yield decreases to 4%?

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Financial Management: A 10-year remaining maturity 6 coupon rate bond is selling
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