Solved: How much has the price of the bond decreased returns, Accounting Basics

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How much has the price of the bond decreased returns

Question - An investor bought a 10-year $1,000 face-value band for par 3 years age. The annual coupon rate on this bond is 8.5% and interest payments are paid annually.

How much has the price of the bond decreased returns required by hand holders are now 2% higher than they were 3 years ago?

$84.11

$74.55

$109.51

$95.79

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Accounting Basics: How much has the price of the bond decreased returns

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Accounting Basics: How much has the price of the bond decreased returns

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