In 2009, you purchased a $1,000 par value corporate bond with an interest rate of 4 percent.

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In 2009, you purchased a $1,000 par value corporate bond with an interest rate of 4 percent. Today, comparable bonds are paying 3.30 percent.
a. What is the approximate dollar price for which you could sell your bond?
b. In your own words, describe why your bond increased in value.

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Focus On Personal Finance

ISBN: 9781265521974

7th Edition

Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart

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