Multiple Choice
Ms. Jones purchased a 20-year Treasury bond bearing a 12% coupon rate. She purchased the bond at par ($1,000) . If rates fall to 9%, what will be the new price of the bond?
A) $1,333
B) $1,500
C) $750
D) $900
E) There will be no change in the price of the bond
Correct Answer:
Verified
Correct Answer:
Verified
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