Calculate the price of bond that matures

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Reference no: EM132022096

Calculate the price of a bond that matures in 8 years, has a face value of $5,000, and has a coupon rate of 2% (paid semiannually) if the market interest rate is 1%. What is the price of the bond if the market interest rate drops to 0.5%?

Reference no: EM132022096

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