Question: show a numerical example of interest rate risk by comparing % changes in price for 1 year and 3 year annual coupon bonds. Assume coupon

show a numerical example of interest rate risk by comparing % changes in price for 1 year and 3 year annual coupon bonds. Assume coupon interest rate = 10%, Yield to Maturity = 5%, Face value= 100. Use 2% increase in YTM (i.e., 5% 7%).

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