What would happen to the price of a three-year coupon-paying


Problem

What would happen to the price of a three-year coupon-paying bond, with a face value of $100 and a coupon rate of 10% per annum (coupon paid quarterly), if the required rate of return was:

• 12% per annum?
• 8% per annum?

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Finance Basics: What would happen to the price of a three-year coupon-paying
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