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Question: If you observe a flat 6% year annually compounded yield curve in the economies below,

(a) What is the price of USD 20 million in face value of a 50-year fixed-rate bond that pays a coupon amount of USD 1.2 million per year? You may assume annual compounding.

(b) What is the dollar duration of a 6-year annual pay floating annuity with a face value of SEK 10 million?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92857641

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