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  3. one year ago, you purchased a 5 percent annual cou

One year ago, you purchased a 5 percent annual coupon, $1,000 par, 6-year bond for...

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Accounting

One year ago, you purchased a 5 percent annual coupon, $1,000 par, 6-year bond for a clean price of $1,065. The bond now has 5 years remaining until maturity. Today, the yield to maturity on this bond is 4 percent. How does today's price of this bond compare to your purchase price?

$30.78 lower

$20.48 lower

$35.30 higher

$25.31 higher

Answer & Explanation Solved by verified expert
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