How much the bond price will increase and decrease

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Reference no: EM131360058

A bond that is currently sold at par will mature in two years. The face value of the bond is $1,000. The coupon rate of the bond is 8%. Suppose that the yield to maturity of the bond decreases by 2%, how much (in dollar amount) the bond price will increase/decrease?

Reference no: EM131360058

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