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Q#3) CLO-02&03. a) What is the interest rate risk for a bond? Assume a scenario that what happens to the following bonds: (05 Marks) i.

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Q#3) CLO-02\&03. a) What is the interest rate risk for a bond? Assume a scenario that what happens to the following bonds: (05 Marks) i. 5 years vs 8 years maturity bonds ii. 10% coupon vs 15% coupon bonds b) What is a short sale? Assume a scenario and exhibit when a stock is sold short? (05 Marks)

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