Question: Refer to the previous problem. How would your answer change if the market rate falls to 6%? Data From Previous Problem A & B Corporation

Refer to the previous problem. How would your answer change if the market rate falls to 6%?


Data From Previous Problem

A & B Corporation issued bonds for 10 years, with face value of $10,000 and a 6% annual coupon rate. What is the current market price of the bond if the market rate is 8%? Assume semi-annual payments.

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