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5 Does the price of a bond change? ** A 6%, 10-year bond pays a coupon once a year and yields 5% per annum. If the yield remains unchanged, what will be its price in 1 year? Assume FV = $100. One year has lapsed so 9 years remain; n = 9 In one year’s time the PV of the remaining stream of coupon payments is $42 and the PV of the $100 = $64.
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