Question: A $ 1 , 0 0 0 face value bond that matures in 2 0 years has a coupon rate of 1 2 % and

A $1,000 face value bond that matures in 20 years has a coupon rate of 12% and pays interest semiannually. What is the value of this bond today if similar bonds have a 10% yield to maturity? What would be the bond's value if yields suddenly increase to 14%?

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