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If the risk-free rate is 5% and a security is yielding 9%, what is the risk premium? Bond A has an annual coupon of 6%
If the risk-free rate is 5% and a security is yielding 9%, what is the risk premium?
Bond A has an annual coupon of 6% and bond B has an annual coupon of 9%. Both have 7 years until maturity. The market demanded interest rates for these bonds moves from 4.5% to 5.5%. What is the price of bond A before the interest rate change?
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