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Intro General Electric has two bonds outstanding. Both issues have the same credit rating, a face value of $ 1 , 0 0 0 and
Intro General Electric has two bonds outstanding. Both issues have the same credit rating, a face value of $ and a coupon rate of Coupons are paid twice a year. Bond matures in year, while bond matures in years. The market interest rate for similar bonds is Part By how much will the price of bond A fall if yields increase to immediately? Para By how much will the price of bond fall if yields increase to immediately in absolute dollars
Intro
General Electric has two bonds outstanding. Both issues have the same credit rating, a
face value of $ and a coupon rate of Coupons are paid twice a year. Bond
matures in year, while bond matures in years.
The market interest rate for similar bonds is
Part
By how much will the price of bond A fall if yields increase to immediately?
Para
By how much will the price of bond fall if yields increase to immediately in
absolute dollars
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