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Part $1$

A

$ $5$ comma $000$$$5,000$

bond with a coupon rate of

$6\mathrm{.}36\mathrm{.}3\%$

paid semiannually has

eighteight

years to maturity and a yield to maturity of

$6\mathrm{.}36\mathrm{.}3\%.$

If interest rates fall and the yield to maturity decreases by$0\mathrm{.}8\%,$ what will happen to the price of the$$ bond?