What is the price of this bond one year

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Reference no: EM131953040

A 10 year remaining maturity and 6% coupon rate bond is selling to yield 6%. The bond pays interest semi-annually. The par value is $1000.

a) what is the price of this bond one year later assuming the yield increases to 7%

b) what is the price of this bond one year later if the yield decreases to 5%

Reference no: EM131953040

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