A 1000 bond has a 75 percent coupon and matures after 10


A $1,000 bond has a 7.5 percent coupon and matures after 10 years. If current interest rates are 10 percent, what should be the price of the bond?

If after six years interest rates are still 10 percent, what should be the price of the bond?

Even though interest rates did not change, why did the price of the bond change?

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Finance Basics: A 1000 bond has a 75 percent coupon and matures after 10
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