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4. (20 points) You buy a 2-year, 10% coupon bond with a principal of $10,000. The spot rates are 5% and 10% for 1
4. (20 points) You buy a 2-year, 10% coupon bond with a principal of $10,000. The spot rates are 5% and 10% for 1 and 2 years. If the yield to maturity is 9.75%. What is the new price of the bond if the yield increases 1%.
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Multinational Finance Evaluating Opportunities Costs and Risks of Operations
Authors: Kirt C. Butler
5th edition
1118270126, 978-1118285169, 1118285166, 978-1-119-2034, 978-1118270127
