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Time to Maturity (Years) I/YR = 6.50% I/YR = 10% % Price 1 5 15 30 3. (6 points) How does a bonds time to
Time to Maturity (Years) I/YR = 6.50% I/YR = 10% % Price 1 5 15 30 3. (6 points) How does a bonds time to maturity affect bond price sensitivity (Column D)? 4. (6 points) How does a bonds coupon rate affect bond price sensitivity (Column D)? 5. (4 points) For both scenarios (I/YR = 6.50% and 10%), determine whether Bond A and Bond B are premium or discount bonds?
(Use the table for 3,4,5)
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