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(a) As one of investment committee of a unit trust fund, Marissa is considering to invest in either of two outstanding bonds. The bonds pay

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(a) As one of investment committee of a unit trust fund, Marissa is considering to invest in either of two outstanding bonds. The bonds pay interests annually with 11% coupon rate and RM1,000 par values. Bond A is a 10-year bond while Bond B has 15 years to maturity. (0) Calculate the value of each bond if the required return is 8% and 14%. If Marissa tries to minimize interest rate risk, which bond should she buy? Why

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