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The prices of two bonds with 1 0 - year maturities are 8 1 . 6 2 % ( for a 2 % pa coupon
The prices of two bonds with year maturities are for a pa coupon rate respectively for a pa coupon rate These annual coupons are paid annually.
a Calculate the yields to maturity and durations of each of these bonds.
b Which bond oers the higher vs lower yield to maturity? Which one has the longest and shortest duration?
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