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Construct some simple examples to illustrate your answers to the following: a.) If interest rates rise, do bond prices rise or fall? give a calculations
Construct some simple examples to illustrate your answers to the following:
a.) If interest rates rise, do bond prices rise or fall? give a calculations example
b. If the bond yield is greater than the coupon, is the price of the bond greater or less than 100? give a calculation example
d.) If interest rates change, does the price of high-coupon bonds change proportionately more than that of low-coupon bonds? give a calculation example
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