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Comment on any identified price risk

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Reference no: EM131317237

An Authorised Deposit Institution (ADI) issued a 6% January 2016 bond with a face value of $15 000 on 31 January 2012 at a yield of 7%. Assume that coupon payments are made every six months. The bond was sold on 31 January 2015 when the yield is 8%. Calculate the selling price of the bond on 31 January 2015. Comment on any identified price risk.

Reference no: EM131317237

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