What would be the percentage change is bond value

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Assume you purchased a Verizon Corporation Bond one year ago for $915.60 when the market rate of interest was 10.3%. This bond matures on February 5, 2026 (assume there are exactly 10 years to maturity) and is contracted to pay a semi-annual coupons at the rate 9.0%. A) If the current market rate of interest is now 8.3%, what would be the percentage change in bond value from the time you purchased this bond until today? B) If the current market rate of interest is 12.7%, what would be the percentage change is bond value from the time you purchased this bond until today?

Reference no: EM131308614

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