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Business, 08.01.2020 22:31 TamB01

Imagine that a local water company issued $10,000 ten-year bond at an interest rate of 6%. you are thinking about buying this bond one year before the end of the ten years, but interest rates are now 9%.
given the change in interest rates, would you expect to pay more or less than $10,000 for the bond?
calculate what you would actually be willing to pay for this bond.

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