What is price of new bravo bonds

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Question

Bravo, Inc., just issued a corporate bond in this same environment. Since Bravo's credit risk is lower, they were able to offer bonds with a 4.5% coupon (again, paid semi-annually) with a 20 year maturity at par of $1000. If (after these bonds are issued) interest rates increase, so that the yield-to-maturity increases by 1% per year, What is the price of the new Bravo bonds after the increase in YTM?

Reference no: EM133291098

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