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Unformatted text preview: d. If the market interest will drop for 5 basis point, what is percentage change in price and estimated new price for each bond? e. Which bond has most price sensitivity to interest rate change? f. Suppose the interest rate will increase, which bond will you invest? Why?...
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This note was uploaded on 01/11/2012 for the course FINANCE fin 3701 taught by Professor Tengihla during the Spring '11 term at Assumption College.
- Spring '11