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2. a. Calculate the price of a two-year bond with a 10% coupon and an interest rate of 10%. b. Assume interest rate rises to

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2. a. Calculate the price of a two-year bond with a 10% coupon and an interest rate of 10%. b. Assume interest rate rises to 12%, what will be the value of the bond? c. What will be the value of this bond if interest rate rather falls to 8%

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