Question: This question should be answered by hand. Show all your calculations. There are three bonds that have the same coupon rate of 1 0 %
This question should be answered by hand. Show all your calculations. There are three bonds that have the same coupon rate of and the same face value of $ They are a oneyear bond, a twoyear bond, and a threeyear bond, respectively. On July all three bonds are purchased at $at par Coupons are paid out before June every year. On June the interest rate rises from to On June what is the price of the oneyear bond, twoyear bond, and threeyear bond?
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