Solved: What would the bond be worth for given interest rates, Finance Basics

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What would the bond be worth for given interest rates

Problem: You purchased a $1,000 five percent coupon bond that matures in 10 years.

How much would your bond be worth if interest rates fall to 4% the day after you purchase the bond? What would the bond be worth in one year if interest rates fell to 4% at that point?

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Finance Basics: What would the bond be worth for given interest rates

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