Question: 3. A $1,000 face value bond has a 6 percent coupon and pays interest semiannually. The bond matures in 8 years and has a yield

A $1,000 face value bond has a 6 percent coupon and pays interest semiannually. The bond matures in 8 years and has a yield to maturity (YTM) of 6.75 percent.

What is the market price of the bond?

How much would the price of the bond change if the interest rate changed to 6%?

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