What is the effect on the bond price

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On Jan 1, 2012, BLANK is considering the newly issued 10-year AAA corporate bond, which is due Jan 1, 2022, with a coupon rate of 6% per year paid every 6 months. The bond is traded at par. Suppose the market interest rate declines by 100 bps (i.e., 1%), what is the effect on the bond price?

Reference no: EM13282881

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