Question: Question 3 [20 marks] If interest rates decline after a bond issue, what will happen to the bond's price and YTM? If this bond has

Question 3 [20 marks] If interest rates decline after a bond

Question 3 [20 marks] If interest rates decline after a bond issue, what will happen to the bond's price and YTM? If this bond has callable provision, do you think the price changes would be more or less than the one without call provision? Explain

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