Question: PLEASE provide an answer for this exercise using an excel table: Consider three bonds with 8% coupon rates, all selling at face value. The short
PLEASE provide an answer for this exercise using an excel table:
Consider three bonds with 8% coupon rates, all selling at face value. The short term bond has a maturity of 4 years, the intermediate-term bond has a maturity of 8 years, and the long-term bond has maturity of 30 years.
Compute the price of these bonds if their yields increase to 9% and if it decreases to 7%. What can be concluded?
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