Question: Consider three bonds with 1 4 . 6 6 % coupon rates, all selling at face value. The short - term bond has a maturity
Consider three bonds with coupon rates, all selling at face value. The shortterm bond has a maturity of years, the intermediateterm bond has maturity years, and the longterm bond has maturity years.
a What will be the price of each bond if their yields increase to
b What will be the price of each bond if their yields decrease to
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