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Both Bond Bill and Bond Ted have 1 2 . 8 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has
Both Bond Bill and Bond Ted have percent coupons, make semiannual payments, and are priced at par value. Bond Bill has years to maturity, whereas Bond Ted has years to maturity. Both bonds have a par value of
a If interest rates suddenly rise by percent, what is the percentage change in the price of these bonds? A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
b If rates were to suddenly fall by percent instead, what would be the percentage change in the price of these bonds? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
tableBond Bill,,Bond Ted,aPercentage change in price,,
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