What is the price of the bond

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(a): What is the value of a seven-year 9.2 percent coupon bond selling to yield 7.6 percent, assuming the coupon payments are made semi-annually and assuming par value is $100?

(b): One year later, interest rates decrease to 6.2%. What is the price of the bond one year later with the yield change?

(c): If you expect interest rates to rise, what steps should you take to adjust the securities in a bond portfolio you manage?

Reference no: EM133075384

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