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Economic outlook appears weaker and investors

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What is the price of a zero-coupon bond with a par value of $10000 and a 10 year maturity, when investors expect a return of 6.5%? B. What would the price be if the economic outlook appears weaker and investors are now willing to accept a rate of return of 3.5%?

Could you please calculate and provide an explanation to the calculation above, as its pretty unclear to me at this point.

Reference no: EM133239286

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