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Choose U.S. Treasury bonds with different coupons and different maturities. Calculate how their prices would change if their yields to maturity increased by 1 percentage

Choose U.S. Treasury bonds with different coupons and different maturities. Calculate how their prices would change if their yields to maturity increased by 1 percentage point. Are long- or short-term bonds most affected by the change in yields? Are high- or low-coupon bonds most affected? (Assume annual coupon payments.) Please calculate based on the bonds below.

Coupon Bonds/NotesAnnual Coupon RateMaturityBid PriceAsk PriceClosing Price

MARKET BASED NOTE

2.00% Annual Coupon

2/28/21 Maturity

100.953 Bid Price

100.938 Ask Price

100.938 Closing Price

MARKET BASED BOND

3.13% Annual Coupon

11/15/41 Maturity

134.047 Bid Price

133.969 Ask Price

133.344 Closing Price

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