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What is the current yield

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1. You purchase a $1,000 bond that matures in 10 years and has a 6.5% coupon rate. If interest rates rise to 7.25% what would be the price of the bond?

2. Under the same example, what would be the price of the bond if there was 8 years remaining when interest rates increased to 7.25?

3. For questions 1 and 2, what is the current yield?

Reference no: EM133060935

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