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please show work as if using a financial calculator. 7-5 An investor has two bonds in his portfolio that have a face value of BOND
please show work as if using a financial calculator.
7-5 An investor has two bonds in his portfolio that have a face value of BOND VALUATION $1,000 and pay an 11% annual coupon. Bond matures in 12 years, while Bond S matures in 1 year. a. what will the value of each bond be if the going interest rate is 6%, 8%, and 12%? Assume that only one more interest payment is to be made on Bond S at its maturity and that 12 more payments are to be made on Bond L b. Why does the longer-term bond's price vary more than the price of the shorter-term bond when interest rates changeStep by Step Solution
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