Javron bought a bond for $1,040 that matures in 10 years with a face value...
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Javron bought a bond for $1,040 that matures in 10 years with a face value of $1,000. The coupon rate on the bond is 5% and the yield to maturity on the bond at the time of purchase was 4.5%. Today the yield on similar bonds is 5.20%. What has happened to the price of this bond in the market place? The price of the bond has remained the same The price of the bond has risen The price of the bond has fallen The price of the bond will be remain at $1,040 today
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