Solved: How would you expect this announcement to affect the value, Managerial Economics

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How would you expect this announcement to affect the value

1. Three months ago you purchased, at par, a $100,000 bond with a stated interest rate of 5%. Today, the Federal Reserve announced that it is reducing the discount rate by 0.5%. How would you expect this announcement to affect the value of your bond? Explain your response.

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Managerial Economics: How would you expect this announcement to affect the value

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