What is the value of the bond in the marketplace

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Answer each question by providing the most appropriate answer.

1) A 10-year corporate bond has a coupon rate of 5% with annual payments. If interest rates rise to 8% on similar bonds, then what is the value of the bond in the marketplace?

2) A 10-year corporate bond has a coupon rate of 5% with quarterly payments. If interest rates rise to 8% on similar bonds, then what is the value of the bond in the marketplace?

Reference no: EM132813710

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