How much would the market price change if the prevailing


Determine the market price of a $1,000 face-value bond that has 25 years to maturity and pays 9 percent interest on an annual basis if the prevailing rate for similar bonds is 8.5 percent.

How much would the market price change if the prevailing interest rate rose to 10.5%?

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Financial Management: How much would the market price change if the prevailing
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