Current market price of the banana enterprises bonds

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Reference no: EM131602104

Banana Enterprises issues a 20-year bond with a face value of $1,000 and a 5% annual coupon, and which will repay the holders $1,000 at maturity.

Question 1: What is the current market price (B0) of the Banana Enterprises bonds?

Question 2: If the yield curve shifts upward by 2 percentage points. What happens to the market price of the Banana Enterprises bonds?

Reference no: EM131602104

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