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Suppose you have a 3 year zero-coupon bond. Zero-coupon bond makes payments only in the end of its maturity period (in this case in year
Suppose you have a 3 year zero-coupon bond. Zero-coupon bond makes payments only in the end of its maturity period (in this case in year 3). Determine what would be percentagechange in the value of the bond if its ownyield-to-maturity increased by 1 percent. The only additional information you need to answer this question is the current bondyield-to-maturity which is 6%.
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