How much does the current value of the bond change by

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Reference no: EM133375228

Question: A 10 year zero coupon bond has a face value of $1060.
i) Assuming a market interest rate of 5.5%, what is the current price of the bond?
ii) If the market interest rate drops 1% how much does the current value of the bond change by?

Reference no: EM133375228

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