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A bond has a Face Value of $1000, Coupon rate of 7%, Yield/market interest is 11%....

A bond has a Face Value of $1000, Coupon rate of 7%, Yield/market interest is 11%. The bond has a time to maturity of 9 years. Assuming annual coupon payments, how does a 1% increase in interest rates affect the price of the bond? What is the new price of the bond?

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As the yield increases, the price of bond decreases.

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