Question: $ 1 comma 0 0 0 $ 1 , 0 0 0 bond with a coupon rate of 6 . 6 6 . 6 %

$ 1 comma 000$1,000
bond with a coupon rate of
6.66.6%
paid semiannually has
twotwo
years to maturity and a yield to maturity of
88%.
If interest rates rise and the yield to maturity increases to
8.38.3%,
what will happen to the price of thebond?

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