Question: Bond maturity 4 Years initial interest rate = 5.00% Coupon Rate 3.00% Annual Coupon Face Value $1,000.00 Dollar Coupons $30.00 Given the information in the

Bond maturity 4 Years initial interest rate = 5.00% Coupon Rate 3.00% Annual Coupon Face Value $1,000.00 Dollar Coupons $30.00 Given the information in the table, what is the price effect in year 2 if the interest rate changes from 5.00% to 4.00% ? $18.51 $17.97 $18.33 $20.16

Question 1 25 pts nitial interest rate Bond maturity 4 3.00% 1,000.00 $30.00 Years 5.00% Coupon Rate Face Value Dollar Coupons Annual Coupon Given the information in the table, what is the price effect in year 2 if the interest rate changes from 5.00% to 4.00% ? O $18.51 $17.97 $18.33 $20.16 Question 1 25 pts nitial interest rate Bond maturity 4 3.00% 1,000.00 $30.00 Years 5.00% Coupon Rate Face Value Dollar Coupons Annual Coupon Given the information in the table, what is the price effect in year 2 if the interest rate changes from 5.00% to 4.00% ? O $18.51 $17.97 $18.33 $20.16

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