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Each of the following bonds has a $100 par value. Bond Coupon interest rate (% p.a.) Coupon payment Years to maturity Yield to maturity (%

Each of the following bonds has a $100 par value. Bond Coupon interest rate (% p.a.) Coupon payment Years to maturity Yield to maturity (% p.a.) X 10 Annual 10 9 Y 8 Semi-annual 10 9 a) Calculate the value of each bond (10 marks) b) Which bond, X or Y, has the higher interest rate risk and why? (5 marks)

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