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Business, 14.08.2020 04:01 llama1314

Consider two bonds, a 3-year bond paying an annual coupon of 5%, and a 20-year bond, also with an annual coupon of 5%. Both bonds currently sell at par value. Now suppose that interest rates rise and the yield to maturity of the two bonds increases to 8%. a. What is the new price of the 3-year bond?

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Consider two bonds, a 3-year bond paying an annual coupon of 5%, and a 20-year bond, also with an an...
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