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Calculate the price of the bond A-B-C-D, continuously compounding and yield equal to 6%. Bond Name Coupon Rate Year to Settlement A 0.04 5 B

Calculate the price of the bond A-B-C-D, continuously compounding and yield equal to 6%.

Bond Name Coupon Rate Year to Settlement
A 0.04 5
B 0.08 5
C 0.04 20
D 0.08 20

Compare these bonds price changes when yield changes 0.1%, 0.5%, 1% both positively and negatively.

Examine the bonds price sensitivity to coupon rate and maturity.

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