a two-year bond with $1,000 face value and 10% coupon rate is sold for $1,000 today. If one year later the market interest rate decreases by 1%, then this bond will have a market price of $_____ (round to the nearest integer, no decimal point) then.

a two-year bond with $1,000 face value and 10% coupon rate is sold for $1,000 today. If one year later the market interest rate decreases by 1%, then this bond will have a market price of $_____ (round to the nearest integer, no decimal point) then.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 8P

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