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Consider Bond ANT and Bond BEE as follows: a. Determine the 'yield to maturity' (YTM) respectively for Bond ANT and Bond BEE. 3 marks b.

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Consider Bond ANT and Bond BEE as follows: a. Determine the 'yield to maturity' (YTM) respectively for Bond ANT and Bond BEE. 3 marks b. All else the same, if interest rates unexpectedly increase by 3%, what would be the percentage change in the price of Bond ANT and Bond BEE? Show all your calculations. 5 marks c. All else the same, if interest rates unexpectedly decrease by 3%, what would be the percentage change in the price of Bond ANT and Bond BEE? Show all your calculations. 5 marks d. Referring to your answers in (b) \& (c), briefly discuss the interest rate risk of bonds with longer term to maturity. 3 marks Consider Bond ANT and Bond BEE as follows: a. Determine the 'yield to maturity' (YTM) respectively for Bond ANT and Bond BEE. 3 marks b. All else the same, if interest rates unexpectedly increase by 3%, what would be the percentage change in the price of Bond ANT and Bond BEE? Show all your calculations. 5 marks c. All else the same, if interest rates unexpectedly decrease by 3%, what would be the percentage change in the price of Bond ANT and Bond BEE? Show all your calculations. 5 marks d. Referring to your answers in (b) \& (c), briefly discuss the interest rate risk of bonds with longer term to maturity. 3 marks

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