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f. Explain briefly the difference between price risk and reinvestment risk. Show the price change to each of the following bonds if market interest rates
f. Explain briefly the difference between price risk and reinvestment risk. Show the price change to each of the following bonds if market interest rates rise from 9% per year to 10% to year. Which has the most reinvestment risk and why? A 1-year bond with a 9% annual coupon A 5-year bond with a 9% annual coupon A 5-year bond with a zero coupon A 10-year bond with a 9% annual coupon A 10-year bond
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