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    International Financial Management
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    Exam 7: International Bond Market
  5. Question
    What Happens to the Present Value of the Bonds in 4.,if
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What Happens to the Present Value of the Bonds in 4.,if

Question 7

Question 7

Essay

What happens to the present value of the bonds in 4.,if the implied yield to maturity increases by 1%?

Correct Answer:

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Bond A:
100,000,000/(1.054)10 = 59,100,872...

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