How much will the price of the bond change if yield changes

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Suppose that you purchase a $5,000 coupon bond with an annual coupon of 8%, with interest compounded annually, and a maturity of 5 years. If the bond is sold at par how much will it yield?

How much will the price of the bond change if yield changes to 9%?

If yield for 5 year US Treasuries is 7% and inflation expectation is 2% per year over the same period, what is the real yield (per year) over the next 5 years?

Reference no: EM131855829

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