Find out price of the bond if ytm

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6 year, 8% coupon bond with semi annual payments, Par Value = $1000.

1) Find out price of the bond if YTM = 10%.

2) What happens to the bond price if YTM decreases 1 basis point?

3) Is the effect of 1 basis point decrease on a 20 year old coupon bond larger, = or smaller than that in 2)?

Reference no: EM132131581

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