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Happens to the price of the bond

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A company has bonds paying $100 per year and a face value of $1000 due in ten years. They were issued at $1000 so the market determined the required return was 10%. If the industry becomes more risky and the market now requires a 12% rate or return, what happens to the price of the bond? Assume this happens immediately after the bond is released.

Reference no: EM131050186

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