A 10 year remaining maturity and 6 coupon rate bond is


A 10 year remaining maturity and 6% coupon rate bond is selling to yield 6%. The bond pays interest semi-annually. The par value is $1000.

a) what is the price of this bond one year later assuming the yield increases to 7%

b) what is the price of this bond one year later if the yield decreases to 5%

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