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If the market interest rate rises to 15 what will be the

A bond is offered with face value of Rs 1000.00, a 5% coupon rate with annual rate with annual payments , and twenty years to maturity. If the market interest rate is 12%, what should be the price. If the market interest rate rises to 15%, what will be the new price of the bond? If the market interest rate drops to 9% instead, what will be the new price for the bond?

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Finance Basics: If the market interest rate rises to 15 what will be the

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