Explain how do you find the value of a bond

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Answer all of the following questions

1. Explain how do you find the value of a bond, and why do bond prices change?

2. Explain how inflation affects interest rates?

3. Suppose you are reviewing a bond that has a 15% annual coupon and a face value of $2000. There are 30 years to maturity, and the yield to maturity is 12%. What is the price of this bond?

Reference no: EM131193827

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