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Cary owns the following two bonds of comparable quality and characteristics; what is the current price of Bond S 3. Term Remaining Coupon Rate Current

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Cary owns the following two bonds of comparable quality and characteristics; what is the current price of Bond S 3. Term Remaining Coupon Rate Current Price Bond R 15 years 5.625% 104.50 Bond S 9 years 2.25% Larry owns the following two bonds; what is the coupon rate of Bond B Bond A 13 years 5.5% 99.625 Bond B Term Remaining Coupon Rate Current Price 10 years 97.875 5. Use the same facts in #3 above. Cary wants to know whether Bond R or Bond s is more volatile in terms of interest rate changes. Demonstrate to Cary, using the duration calculation, the bond that will be less volatile (you must use the Duration Calculation to answer this question and receive credit for your response)

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