# Question

a. By how much would the value of the bond in Problem 4 change if investors wanted an 8-percent rate of return?

b. A bond with the same par value and coupon rate as the bond in Problem 4 has 14 years until maturity. If investors will use a 10 percent discount rate to value this bond, by how much should its price differ from the bond in Problem 4?

b. A bond with the same par value and coupon rate as the bond in Problem 4 has 14 years until maturity. If investors will use a 10 percent discount rate to value this bond, by how much should its price differ from the bond in Problem 4?

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