One year ago, you purchased a 5 percent annual coupon, $1,000 par, 6-year bond for...
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Finance
One year ago, you purchased a 5 percent annual coupon, $1,000 par, 6-year bond for a clean price of $1,075. The bond now has 5 years remaining until maturity. Today, the yield to maturity on this bond is 6.5 percent. How does today's price of this bond compare to your purchase price?
a) $137.34 lower
b) $125.31 higher
c) $135.30 lower
d) $150.40 higher
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