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What would happen to the bond price

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Suppose that Firm ABC has a bond trading with 8 years remaining till maturity and with a coupon rate of 5%. The bond will return its face value of $1,000 at maturity. Suppose that the bond's yield to maturity, originally at 5%, just increased to 6%. In this case, what would happen to the bond's price?

Reference no: EM132740109

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