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Consider a 3-Year Bond with a Par Value of $1,000

Question 57

Multiple Choice

Consider a 3-year bond with a par value of $1,000 and an 8% annual coupon.If interest rates change from 8 to 6% the bond's price will:

A) increase by $51.54.
B) decrease by $51.54.
C) increase by $53.46.
D) decrease by $53.46.

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