Question: Problem 4 [10 points) Let B, be the value at time t in years of a bond with maturity T paying annual coupon c with

Problem 4 [10 points) Let B, be the value at time

Problem 4 [10 points) Let B, be the value at time t in years of a bond with maturity T paying annual coupon c with face value I and yield to maturity 3: Thus B, - : [ - 4 +)*-}* Show that the fractional increases in value per year of the bond is AB_B4+1-B, B = y - current yield B

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