A bond has a coupon payment of $100; interest is paid and compounded annually. It will mature in three years.?
Its face value is $1,000 and the yield on bonds of similar risk and maturity is 7.5%. What will be the price of this bond? Suppose the market rate of interest rose to 12%; what would happen to the price of the bond? ……if anyone can do it , can you guys tell me how to do it ? thanks !
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