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Consider two zero coupon bonds in which you receive $ 1 0 0 at the maturity date, one maturing in 3 years and one maturing
Consider two zero coupon bonds in which you receive $ at the maturity date, one maturing in years and one maturing in years. Both are currently priced to yield percent. Calculate the current market value of each bond. Now suppose the yield to maturity falls to percent. Calculate the percent change in the price of each bond as the yield went from percent to percent.
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