What is the relationship between the coupon rate

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1. B Corporation has $1000 par value bonds with 9 years left to maturity, a stated annual coupon rate of 6.5 percent (with annual interest payments).

What are these bonds worth today if the required market rate of return is 6 percent? _________

What are these bonds worth today if the required market rate of return is 5 percent? __________

What are these bonds worth today if the required market rate of return is 3 percent? __________

What is the relationship between the coupon rate, changes in the market rate and the value of these bonds?

Reference no: EM132014805

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