Question: A 20 year bond issued by Wetherby Ltd has a face value of 100 and pays an annual coupon of 4%. At the time of

A 20 year bond issued by Wetherby Ltd has a face value of 100 and pays an annual coupon of 4%. At the time of issue, the yield to maturity is 6%.

Question Assume that the yield moves to 5% in 1 years time, what is the new bond price?

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