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QUESTION-3 (20 PTS): 3. What is a bond? Explain the relationship between bond interest rates and bond yields. Also briefly list the important parameters

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QUESTION-3 (20 PTS): 3. What is a bond? Explain the relationship between bond interest rates and bond yields. Also briefly list the important parameters (variables) in a bond issuance/transaction?

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Understanding Bonds and Their Yields 1 What is a Bond A bond is essentially a loan made by an investor to a borrower usually a corporation or governme... blur-text-image
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