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Business, 20.11.2019 17:31 maustin5323

Interest rate risk. consider two bonds, a 3-year bond paying an annual coupon of 5% and a 10-year bond also with an annual coupon of 5%. both currently sell at face value. now suppose interest rates rise to 10%. (lo6-3) a. what is the new price of the 3-year bonds? b. what is the new price of the 10-year bonds? c. do you conclude that long-term or short-term bonds are more sensitive to a change in interest rates?

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Interest rate risk. consider two bonds, a 3-year bond paying an annual coupon of 5% and a 10-year bo...
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