Business

Zechariah Clements

17 April, 02:34

Suppose in 2020 you buy 2% coupon rate, $1000 face value bond for $1000 that has 3 years left till maturity. Suppose in 2021, when interest rates increase to 5%, you decide to sell it. Calculate the selling price of your bond in 2021. How did its value change because of the interest rate increase?

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