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Question
Consider a five-year, 8 percent annual coupon bond selling at par of $1,000.
Using present value bond valuation techniques, calculate the exact price of the bond after the interest rate increase of 20 basis points.
A. $1,007.94.
B. $992.02.
C. $992.06.
D. $996.01.
E. $1,003.99.
Answer
This answer is hidden. It contains 65 characters.
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