A bond fund manager makes a forecast that she believes will be
accurate about interest rates in five years. She forecasts that
10-year bonds will yield 8% five years from now. Currently, a
15-year bond pays interest once per year of 6% sells for price of
$867.42. If the fund manager’s prediction is correct, what will the
bond’s price be five years from now in dollars and cents. (Use a
financial calculator or Excel to solve this.)
A bond fund manager makes a forecast that she believes will be accurate about interest rates in five years. She forecast
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