What is the current price

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Question - A 6.50 percent coupon bond with ten years left to maturity is priced to offer a 8.0 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.0 percent. What is the change in price the bond will experience in dollars?

Coupon rate - 6.50%

Maturity - 10

Present YTM - 8.0%

Expected YTM in 1 year - 7.0%

Required -

What is the current price?

Expected price in 1 year?

Change in price?

Reference no: EM132566671

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