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please write down the process Consider the following bonds: Bond A: US 10, 20 yr (P=120) Bond B: US 5, 10 YR (Ytm = 7%
please write down the process
Consider the following bonds: Bond A: US 10, 20 yr (P=120) Bond B: US 5, 10 YR (Ytm = 7% 1. What is the YTM of A 2. What is the price of B 3. What is the duration of each bond? 4. Using Duration, what is the percentage price change of each bond if a) interest rates rise by 25 basis points; b) interest rates fall by 25 basis points Step by Step Solution
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