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IN EXCEL FORMAT Interest rate risk - Excel ? FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW X Arial % i A A M

IN EXCEL FORMAT

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Interest rate risk - Excel ? FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW X Arial % i A A M Paste BIU. Cells Alignment Number Conditional Format as Cell Formatting Table Styles Styles Editing Clipboard Font C3 v fo Both Bond Sam and Bond Dave have 6.5 percent coupons, make semiannua B D E F G H 1 1 2 Both Bond Sam and Bond Dave have 6.5 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years to maturity. whereas Bund Dave has 20 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam? Of Bond Dave? If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Sam be then? Of Bond Dave? All bond price answers should be dollar prices 4 5 6 7 Bond Sam: Coupon rate 6.5%

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