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Find new bonds prices and percentage change in price of bond

You have gathered the following data on three bonds:

Bond Maturity Coupon%

A 10 yrs 9%

B 9 yrs 1%

C 5 yrs 5%

a. If the market's required return on all three bonds is 6%, what are the market prices of the bonds (you can assume annual interest payments).

b. The market's required return suddenly rises to 7%. What are the new bonds' prices, and what is the percentage change in price for each bond?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find new bonds prices and percentage change in price of bond

Reference No:- TGS0557030

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find new bonds prices and percentage change in price of bond

Reference No:- TGS0557030

Recent Questions Asked Finance Basics

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