Estimate the price of the bond

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A 22-year bond pays a $40 annual coupon and has a par value of $1,000. It is current YTM is 3%

a. Estimate the price of the bond:

b. If the YTM declines by 25bp, what will be the new price?

c. By what % would the bond’s price change as the result of the YTM decline?

Reference no: EM131977545

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