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1. Two semi annual bonds have similar characteristics other than maturity. One bond matures in 5 years and other 12 years. Which bonds market value

1. Two semi annual bonds have similar characteristics other than maturity. One bond matures in 5 years and other 12 years. Which bonds market value is more sensitive to fluctuations in the investors required returns? Why

2. consider a Corporate Bond priced to yield 8%. If the average investors marginal tax rate is 30% what is the required yield on Municipal bond with similar characteristics?

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