A 6.50% coupon bond with 10 years left to maturity is priced to offer a 8% yield

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A 6.50% coupon bond with 10 years left to maturity is priced to offer a 8% yield to maturity. You believe that in one year, the yield to maturity will be 7%.

1. What is the current price?

2. What is the expected price in 1 year?

3. What is the change in price?

Posted Date: May 18, 2024 04:00 AM

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A 6.50% coupon bond with 10 years left to maturity is priced to offer a 8% yield

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