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Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years to
Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years to maturity, whereas Bond Dave has 20 vears to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam?
If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Dave?
If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Dave?
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Forecasting Principles And Practice
Authors: Rob J Hyndman, George Athanasopoulos
3rd Edition
0987507133, 978-0987507136
