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Bond 1 Bond 2 Bond 3 7/15/20 3/15/20 1/15/2028 9/15/2048 4 2 Settlement Date Maturity Date Frequency Face Value Required Return Coupon Rate 9/1/20 7/1/2038

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Bond 1 Bond 2 Bond 3 7/15/20 3/15/20 1/15/2028 9/15/2048 4 2 Settlement Date Maturity Date Frequency Face Value Required Return Coupon Rate 9/1/20 7/1/2038 2 $1,000 8.00% 7.00% $1,000 7.00% $1,000 10.00% 8.00% 6.00% a Periods to Maturity Invoice Price Accrued Interest Quoted Price Quoted Price (Price function) Current Yield Bond 1 Bond 3 Call Premium % Call Date 2.00% 7/15/23 Bond 2 3.00% 9/1/24 4.00% 1/15/25 b Yield to Call Bond 1 Bond 2 Bond 3 c Duration Modified Duration d Required Return Bond 2 Bond 2 Price Duration approximate price B 8% 2 9% 1 10% 11% 2 12% 3 13% 4 14% 5 6 15% 16% 7 8 Insert scatterplot -9 0 1 32 Bond 1 Bond 2 Bond 3 7/15/20 3/15/20 1/15/2028 9/15/2048 4 2 Settlement Date Maturity Date Frequency Face Value Required Return Coupon Rate 9/1/20 7/1/2038 2 $1,000 8.00% 7.00% $1,000 7.00% $1,000 10.00% 8.00% 6.00% a Periods to Maturity Invoice Price Accrued Interest Quoted Price Quoted Price (Price function) Current Yield Bond 1 Bond 3 Call Premium % Call Date 2.00% 7/15/23 Bond 2 3.00% 9/1/24 4.00% 1/15/25 b Yield to Call Bond 1 Bond 2 Bond 3 c Duration Modified Duration d Required Return Bond 2 Bond 2 Price Duration approximate price B 8% 2 9% 1 10% 11% 2 12% 3 13% 4 14% 5 6 15% 16% 7 8 Insert scatterplot -9 0 1 32

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