Question: A $ 5 , 0 0 0 face - value bond costs $ 4 , 6 3 0 and matures in one year. If the

A $5,000 face-value bond costs $4,630 and matures in one year. If the interest rate on other similar bonds rises from 8% to 10%, what is the approximate price change for this bond? (Hint: Think about the opportunity cost of holding this bond) The price of the bond rises to $4,762. The price of the bond falls to $4,545. The price of the bond rises to $5,093. The price remains unchanged at $4,630.
A $ 5 , 0 0 0 face - value bond costs $ 4 , 6 3 0

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