What will happen to the market value of the bond, Financial Accounting

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What will happen to the market value of the bond

Problem

Suppose you are intending to purchase the GERD bond that pays 5 percent coupon interest per year with 5000 Birr. (a) Calculate, the bond's fair market value (price). (b) Other things being constant, what will happen to the market value of the bond if the government pays you interest semiannually? (c) what conclusion can you make? Why?

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