5 years ago the travel company THALASSA (Public Company) Limited has issued a 15-year bond with an annual interest rate of 5% and a nominal value of € 1,000. Calculate the present value of the bond (present value) if the yield at maturity is 4%. If an investor buys the bond today with the intention of investing in it for a period of 4 years (that is, to sell it in 4 years from today) and if in four years the yield at maturity increases to 5% what will be the value of the bond?

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