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At what price would the bonds sell

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Reference no: EM132857121

Question - Suppose Ford Motor Co. sold an issue of bonds with a 10-year maturity, $1,000 par value, and 10% coupon rate.

Two years after the bonds were issued, the going rate of interest on similar bonds fell to 6%.

At what price would the bonds sell?

Instead of an interest rate decrease, suppose two years after issuance, the going interest on similar bonds rose to 12%.

At what price would the bonds sell?

Reference no: EM132857121

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