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Business, 07.05.2020 04:57 Akkenson17871

Consider two bonds, a 3-year bond paying an annual coupon of 3%, and a 20-year bond, also with an annual coupon of 3%. Both bonds currently sell at par value. Now suppose that interest rates rise and the yield to maturity of the two bonds increases to 6%. 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 3%, and a 20-year bond, also with an an...
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