A 9% annual coupon bond with twenty years remaining to maturity is selling at $1,098.13....
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Finance
A 9% annual coupon bond with twenty years remaining to maturity is selling at $1,098.13.
a. What is the market interest rate on similar bonds?
b. What is the duration of this bond?
c. Suppose the market interest rate increases by 1%. What would the investors be willing to pay for the bond now?
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