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Please, see below. Consider 2 bonds that pay coupons annually. Bond 1 is pays no coupons and matures in 1 year; Bond 2 has coupon
Please, see below. Consider 2 bonds that pay coupons annually. Bond 1 is pays no coupons and matures in 1 year; Bond 2 has coupon 4% and maturity 5 years and Bond 3 has coupon 5% and maturity 10 years...
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