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Business, 26.01.2021 20:00 datboi995

. A zero-coupon bond with 2.5 years to maturity has a yield to maturity of 25% per annum. A 3-year maturity annual-pay coupon bond has a face value of $1000 and a
25% coupon rate. The coupon bond also has a yield to maturity of 25%. Does the
longer maturity bond have a larger interest rate sensitivity? Why or why not?
Calculate for each bond the percentage price change associated with a change of yieldto maturity from 25% to 26%.

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. A zero-coupon bond with 2.5 years to maturity has a yield to maturity of 25% per annum. A 3-year...

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