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The bonds, each with a $1,000 par value and annual convention, are described as following: Current Price Maturity (yrs) Bond Annual Coupon Bond 10 %

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The bonds, each with a $1,000 par value and annual convention, are described as following: Current Price Maturity (yrs) Bond Annual Coupon Bond 10 % Bond 2 11.625% Bond 35 .5% $882. 505 $1403.39 $1107.5913 (1) Analyse the durations of the 3 bonds and why does that matter in the analysis? Explain. (20 Points) (Hint: You need to calculate the YTM of the 3 bonds in order to calculate the Duration)

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