18. Spot interest rates and yields (S3.3) Look again at Table 3.6. Suppose that spot interest rates...

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18. Spot interest rates and yields (S3.3) Look again at Table 3.6. Suppose that spot interest rates all change to 4%—a “flat” term structure of interest rates.

a. What is the new yield to maturity for each bond in the table?

b. Recalculate the price of bond A.

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