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Find what should be the price of the bond

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Reference no: EM132993212

Problem 1: A $1,000 bond has a 5.5 percent coupon and matures after ten years. If current interest rates are 9 percent, what should be the price of the bond?

Problem 2: If after five years interest rates are still 9 percent, what should be the price of the bond?

Reference no: EM132993212

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