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    sabbycat Posts: 5, Reputation: 1
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    Oct 18, 2008, 07:07 PM
    Regards to Coupon Bonds (need urgently)
    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?


    Now how do i start calculating this??

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