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A newly issued U . S . Federal T - Bond matures in 2 1 years. The coupon rate is 3 % and coupons are
A newly issued US Federal TBond matures in years. The coupon rate is and coupons are paid semiannually. The bond is priced at $ V $ and yields The
economy is slowing and many forecasters predict a recession. You expect that the monetary authorities to lower interest rates. You expect the yield to fall to You want to earn
$ by investing in bonds to profit from the interest rate change, how many bonds do you buy? When calculating profit, round the new price of the bond to two decimal places.
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