What will the percentage change in the price of bond

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Reference no: EM131340554

1) Bond T is a 10 percent coupon bond, has 11 years to maturity, makes semiannual payments, and has a yield-to-maturity of 7 percent.

a) What is the bond price if the face value is $1,000?

b) If interest rates suddenly rise by 2 percent, what will the percentage change in the price of Bond T be?

Reference no: EM131340554

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