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A bond trader purchased the following four bonds. Run a price sensitivity analysis to compare the price risk of these bonds. (Show your work and
A bond trader purchased the following four bonds. Run a price sensitivity analysis to compare the price risk of these bonds. (Show your work and refer to the example in Excel.)
a. Bond A with 10 years until maturity and a 10% annual coupon
b. Bond B with 10 years until maturity and zero coupon
c. Bond C with 5 years until maturity and a 1% annual coupon
d. Bond D with 30 years until maturity and a 5% annual coupon
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