Question: A 10 year zero coupon bond has a face value of $1200. i) Assuming a market interest rate of 6%, what is the current price

A 10 year zero coupon bond has a face value of $1200. i) Assuming a market interest rate of 6%, what is the current price of the bond? ii) If the market interest rate increases 1% how much does the current value of the bond change by? iii) Does the yield go up or down if the interest rate drops by 3%? iv) As the bond holder, are you happy with

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