Consider two bonds, a 3-year bond paying an annual coupon of 5.40% and a 10-year bond also with an annual coupon of 5.40%. both currently sell at a face value of $1,000. now suppose interest rates rise to 10%.consider two bonds, a 3-year bond paying an annual coupon of 5.40% and a 10-year bond also with an annual coupon of 5.40%. both currently sell at a face value of $1,000. now suppose interest rates rise to 10%.
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Consider two bonds, a 3-year bond paying an annual coupon of 5.40% and a 10-year bond also with an a...
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