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Government bond: it has a coupon of 4% payable annually, has a term to maturity of 3 years, and currently yields 2.5%. iii. What would
Government bond: it has a coupon of 4% payable annually, has a term to maturity of 3 years, and currently yields 2.5%.
iii. What would happen to the bonds yield to maturity (YTM) (a) if the coupon were higher (b) if the bonds price were lower?
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