Question: a ) a 5 year bond is priced par value when the interest rate in the economy is 4 % . what will happen to

a) a 5 year bond is priced par value when the interest rate in the economy is 4%. what will happen to its price if the interest rate increases to 6%? Would the effect have been different for a 30 year bond? why? c) what happens to the coupon rate of a $1000 face value bond that pays $80 annually in interest if market interest rates change from 9% to 10%?

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