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Anshu Sharma has 3 lines of bonds in her portfollo: - 15 units of Bond A : a 10-year, 12% annual coupon bond with 5

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Anshu Sharma has 3 lines of bonds in her portfollo: - 15 units of Bond A : a 10-year, 12\% annual coupon bond with 5 years remaining before maturity - 10 units of Bond B: a 12-year, 10\% semi-annual coupon bond with 8 years remaining before maturity. - 25 units of Bond C: a 20-year, 8% annual coupon bond, with 1 year remaining before maturity. Assume that all 3 bonds were originally issued at a $1,000 par value, that the current yleid curve is flat, so that the yield to maturity is 9% for all maturities. 1. What is the price of each bond? 2. What is the value of her entire portfolio today? 3. If interest rates were to suddenly rise from 9% to 10%, which of the 3 bonds will have the highest change in price? Explain why. 4. Calculate the % change in the value of Anshu's portfolio as the result of the rate increase

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