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If interest rates in the overall economy increase to 8 percent, which of the following is...

If interest rates in the overall economy increase to 8 percent, which of the following is the market value of a $ 1,000 corporate bond with a fixed interest rate of 6 percent most likely?
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Answer #1

Bond market price will be less than 1000 due to higher economy interest rate. Since the no of year for the bond to mature is not given, exact price cant be calculated.

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