Question: Calculate the price of a 5 year 1 000 par value bond
Calculate the price of a 5-year, $1,000 par value bond that makes semiannual payments, has a coupon rate of 8 %, and offers a yield to maturity of 7 %. Recalculate the price assuming a 9 % YTM. What is the general relationship that this problem illustrates?
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