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A bond investor is interested in buying three bonds to his portfolio: a one-year zero coupon bond a two-year bond with 20% coupon with quarterly
A bond investor is interested in buying three bonds to his portfolio: a one-year zero coupon bond a two-year bond with 20% coupon with quarterly payments, and a five-year zero coupon bond par value=$3000% Glen the yield curve below al Calculate the price of the three bonds the Investor considers to buy Just before the purchase, an unexpected positive news hits the markets, and all yields in the yield curve below decline by half a percentage point (Le 0.5%). Calculate the percentage price change for each bond
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