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9- Bond A matures, in two years, for a face of 1,000 and annual coupons of 10 percent; bond B matures, in two years, for
9- Bond A matures, in two years, for a face of 1,000 and annual coupons of 10 percent; bond B matures, in two years, for a face of 1,000 and annual coupons of 5 percent: the current term structure of interest rates is S, = 0.05 + (0.005)*(t), for t = 0, 1, 2. t i) Find the price of bond A ... ii) Finding the Yield rate (YTM) of bond A... iii) Finding the price of bond B ... iv) Finding the Yield rate (YTM) of bond B... v) Explain the difference between the YTM (Yield To Maturity) rates of bonds A and B
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