What is going to happen to value of bond as time goes by

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Reference no: EM13280076

Consider the following bond: Face value = $1,000; coupon rate = 8%; yield to maturity = 5%; maturity = 5 years.

a. If interest payments are made semiannually, what is the value of this bond?

b. What is going to happen to the value of this bond as time goes by? Explain why.

Reference no: EM13280076

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