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7. Bond prices and yields (S3.1) Choose 10 U.S. Treasury bonds with different coupons and different maturities. Calculate how their prices would change if their

7. Bond prices and yields (S3.1) Choose 10 U.S. Treasury bonds with different coupons and different maturities. Calculate how their prices would change if their yields to maturity increased by 1 percentage point. Are long- or short-term bonds most affected by the change in yields? Are high- or low-coupon bonds most affected? (For simplicity, assume annual coupon payments.)

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