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You have two bonds with the following characteristics: Characteristics Bond A Bond B Coupon 5.0% 5.2% Years to Maturity Par Value Price 7 7 $1,000
You have two bonds with the following characteristics:
Characteristics Bond A Bond B Coupon 5.0% 5.2% Years to Maturity Par Value Price 7 7 $1,000 $1,000 $788.00 $811.00 a. What are the bond durations? b. If rates rise to 5.75%, what are the new prices for each bond?
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a Bond duration is calculated using the formula Durati...
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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
