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1.) Calculate and discuss the price and difference between the following two bonds: NOTE: Pick your own rate and compare.

A.) Bond A has a coupon rate of 9.5% and maturity of 12 years and Bond B has a coupon rate of 6% and maturity of 15 years

B.) Using duration what are the prices of the two bonds when interest rates increase by 200 basis points. By a 75-basis point increase? Why?

Please show all calculations

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92713032

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