Look at the example in Section 24.4 of the Treasury bill and the medium- and long-term bonds.

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Look at the example in Section 24.4 of the Treasury bill and the medium- and long-term bonds. Now assume that the price of the medium-term bond can either fall by $10.75 or rise by $14.0. What can you say now about the relationship between the value of the three bonds?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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