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Can someone pls help me answer this question as soon as possible :) pls show work and formulas, NO EXCEL PLSS : ) BOND VALUATION
Can someone pls help me answer this question as soon as possible :) pls show work and formulas, NO EXCEL PLSS :
BOND VALUATION An investor has two bonds in his portfolio that have a face value of
$ and pay an annual coupon. Bond L matures in years, while Bond S matures
in year.
a What will the value of each bond be if the going interest rate is and
Assume that only one more interest payment is to be made on Bond at its maturity
and that more payments are to be made on Bond
b Why does the longerterm bond's price vary more than the price of the shorterterm
bond when interest rates change?
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