How to find the change in bond price after interest rate problem
Suppose you have a bond with a face value of $1,000 and a maturity date in exactly one year. Assuming there is no coupon payment on the bond and the inflation rate is 4% in the U.S. The market interest rate was 8% yesterday. The Fed conducted open market operations today and decreased the interest rate to 6%, what happened to the value of your bond today?