B Coupon Yield to maturity Maturity (Years) Par Price A 8% 8% 2 $100 $100 9% 8%

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B Coupon Yield to maturity Maturity (Years) Par Price A 8% 8% 2 $100 $100 9% 8% 5 $100 $104.055 For bonds A and B in Question 1: a Calculate the actual price of the bonds for a 100-basis-point increase in interest rates. b. Using duration, estimate the price of the bonds for a 100-basis point increase in interest rates. (Note: Please estimate the change of bond price first, then calculate the new price.) c. Using duration and convexity measures, estimate the price of the bonds for a 100-basis point increase in interest rates

Posted Date: Jul 11, 2024 02:09 PM

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B Coupon Yield to maturity Maturity (Years) Par Price A 8% 8% 2 $100 $100 9% 8%

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