How much would the bond price change

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A $1,000 par value bond with eight years left to maturity pays an interest rate payment semiannually with a 7.75 percent coupon rate and is priced to have a 4.25 percent yield to maturity. If interest rates increase by 1 percent, by how much would the bond's price change? If the interest rates decrease by 1 percent, by how much would the bond's price change?

Reference no: EM131581173

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