What bond price if yield to maturity drops to ten percent

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Reference no: EM132592719

Bonds of RAR Foods are selling in the market for $854.66. These bonds carry a 9 percent coupon paid semiannually, and have 15 years remaining to maturity.

Question 1: What is the bond's yield to maturity?

Question 2: What will be the bond's price if yield to maturity drops to 10%, assuming that all other factors remain the same?

Reference no: EM132592719

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