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Consider a two-year bond with a face value of S100 and a coupon rate of 10%. The current term structure of interest rates is flat

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Consider a two-year bond with a face value of S100 and a coupon rate of 10%. The current term structure of interest rates is flat at 5%. What kind of risk are you exposed to if you hold the bond and your investment horizon is a. one year? b. three years? Consider a two-year bond with a face value of S100 and a coupon rate of 10%. The current term structure of interest rates is flat at 5%. What kind of risk are you exposed to if you hold the bond and your investment horizon is a. one year? b. three years

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