Question: Suppose you purchase a 2 0 - year, 5 . 5 % coupon ( paid annually ) bond with a yield to maturity of 6

Suppose you purchase a 20-year, 5.5% coupon (paid annually) bond with a yield to maturity of 6% and a face value of $1,000.
What will happen to the price of the bond if interest rates decrease by 1%?

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