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Suppose you manage the FIU endowment. You have invested in $10m worth of 3 years zero- coupon French government bonds with a 3.296 yield. When

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Suppose you manage the FIU endowment. You have invested in $10m worth of 3 years zero- coupon French government bonds with a 3.296 yield. When Moody's credit rating agency upgraded French government debt yesterday their yields went down 50bps. What effect did this have on your investment? Assume the bonds have a $1,000 face value. 1. The bond price is Select

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