What would be the percentage change in the bonds price

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Reference no: EM131047613

Price A bond with a $1,000 par value pays a coupon of $40 every six months. The bond has 12 years until maturity and a required return of 8%. Calculate the bond’s price. If the required return suddenly dropped to 6%, what would be the percentage change in the bond’s price?

Reference no: EM131047613

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