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Explain percentage increase in the price of bond

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Consider a 30-year bond paying 12.5% coupons per annum, payable semi-annually and which has a face value of $200. Assume that the yield curve is currently flat at 13.5% pa nominal. Based on exact bond pricing, if interest rates decrease by 100 basis points at all maturities, what is the percentage increase in the price of this bond?

Reference no: EM132638412

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