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1- Bond A matures in 7 years and Bond B matures in 11 years. Market interest rates now increase sharply. What happens to Bonds A and B?

2- What would happen to the values (prices) of a 7% and 11% coupon bonds over time if the required rate of return (Yield to Maturity) remained constant at 9% for the above bond?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92725325

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