Question: ( i ) A Treasury bond with 1 0 0 maturity face value has a 9 annual coupon and 1 5 years left to maturity.
i A Treasury bond with maturity face value has a annual coupon and years left to maturity. What price will the bond sell for assuming that the year yield to maturity in the market is and respectively? Show your workings in full marks
ii Without using any further calculations, comment on whether the price movements would have been greater or smaller if instead of using a year bond a year bond had been used.
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