Interest rate goes down


Compute the present value of a five-year, 6% & 10% coupon bond with a face value of $1000. What happens when the interest rate goes down to 8%? we have two 5 years bonds, one with coupon rate 8% and another 10%...if market rate of interest is 8% what is the value/price of the bond today.

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Basic Statistics: Interest rate goes down
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