Question: A bond has ten years until maturity. The face value on the bond is $1,000.00, while the coupon rate attached to the bond is 9.75%.

A bond has ten years until maturity. The face value on the bond is $1,000.00, while the coupon rate attached to the bond is 9.75%. The bond pays coupons on an annual basis. Investors seek a 7.00% return on the bond.

Find the price of the bond if the yield to maturity changes to 7.00%.

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