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What would happen to the bond’s value if inflation fell and declined to 7%? Would we...

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Finance

What would happen to the bond’s value if inflation fell anddeclined to 7%? Would we now have a premium or a discount bond?(answer with using the question below)

( question B pertaining to the question above

  1. How is the value of a bond determined? What is the value of a10-year, $1,000 par value bond with a 10% annual coupon if itsrequired rate of return is 10%?)

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