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Assume that the market rate increases in 1 day ( overnight ) from 2 . 1 5 % to 1 0 % . Calculate the

Assume that the market rate increases in 1 day (overnight) from 2.15% to 10%.Calculate the present value, before and after the change, of the three-year and thirty-year bonds that have a coupon rate of 5%. What do you notice?

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