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3 ) Suppose you have a 1 0 - year bond ( the bond will mature in 1 0 years ) , with a coupon
Suppose you have a year bond the bond will mature in years with a coupon rate of Coupons are paid on a semiannual basis. The face value of the bond is $ Suppose the bond's yield to maturity suddenly increases from to What is the impact on the price of the bond in percentage terms? Justify all of your response.
Suppose you have a year bond the bond will mature in years with a coupon rate of Coupons are paid on a semiannual basis. The face value of the bond is $ Suppose the bond's yield to maturity suddenly increases from to What is the impact on the price of the bond in percentage terms? Justify all of your response.
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