If the yield to maturity drops what is the bond price

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Lion ltd has just issues a bond with 5 year maturity and a face value of $1,000. The coupon rate is 6% paid annually. Assume the required yield to maturity is 8%.

Problem a- what is the bond price

Problem b- if the yield to maturity drops to 5%, what is the bond price ?

Reference no: EM132917390

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