Question: Help answer this question Assuming that the current interest rate is 10 percent, compute the present value of a ve-year, 5 percent coupon bond with
Help answer this question

Assuming that the current interest rate is 10 percent, compute the present value of a ve-year, 5 percent coupon bond with a face value of $10,000. What happens when the interest rate goes to 11 percent? What happens when the interest rate goes to 9 percent? Instructions: Enter your responses rounded to the nearest penny (two decimal places). PVat an interest rate of10% = $ H PVat an interest rate of11% = 35 D The present value falls v when the interest rate rises to 11 percent. PVat an interest rate of 9% = $ U The present value ses when the interest rate falls to 9 percent
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