What will be the price of this bond suppose the market rate


A bond that will mature in three years has a coupon payment of $100; interest is paid and compounded annually. Its face value is $1,000 and the yield on bonds of similar risk and maturity is 7.5%. What will be the price of this bond? Suppose the market rate of interest rose to 12%; what would happen to the price of the bond? Use Excel (or some other spreadsheet software) to graph the relationship between the interest rate and the price of this bond.

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Financial Management: What will be the price of this bond suppose the market rate
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