cepoijr2315 cepoijr2315

03-06-2024
Business

Answered

Consider the following two bonds with $1000 face value:
Bond A: 10 - year, 10% coupon bond
Bond B: 10 - year, zero - coupon bond
Compute the change in market values of each of the bonds when the rates decrease from 13.5% to 12 %

Answer :

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