Question: 1 5 . A Consider two zero coupon bonds, S & L that represent a short - term and long - term maturity bond respectively.
A Consider two zero coupon bonds, & that represent a shortterm and longterm maturity bond respectively. The two bonds have the following features:
Bond : Maturity years $Par$ Price $
Bond LC: Maturity years $Par$ Price $
Which bond, the lowcoupon bond LC or the highcoupon bond HC exhibits a greater price change when both yields increase by
Price of Bond when :
Price change of
Price of Bond LC when :
Price change of
A Consider two coupon bonds, HC and LC with the same maturity but the different coupon rate. HCLC represent a HighLow Coupon, respectively. Assume m The two bonds have the following features:
Bond HC: Maturity years PMT $ Par $ YTM Price $
Bond LC: Maturity years PMT $ Par $ YTM Price $
Which bond, the lowcoupon bond LC or the highcoupon bond HC exhibits a greater price change when both yields increase by
Compute all in excel using excel formulas please
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