What is the percentage change in bonds price

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Reference no: EM131993015

Consider a five-year 15% I woke up on bond with a face value of 1000. The pond is treating a rate of 12%.

A. what is the price of the bond?

B. If the rate of interest increases 1% what will be the bonds new price?

C. Using your answers to parts a and B what is the percentage change in the bonds price as a result of the 1% increase in interest rates?

Reference no: EM131993015

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