Question: Consider a 2-year bond with 7% coupon that has a present yield to maturity of 10%. If interest rates remain constant, one year from now

Consider a 2-year bond with 7% coupon that has a present yield to maturity of 10%. If interest rates remain constant, one year from now the price of this bond will be:

1.Cannot be determined.

2.The same.

3.Lower.

4.Higher.

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