Bond X Bond Y N (semi-annual) 10 12 Rd (semi-annual) 3.5% 3.5% PMT (semi-annual) 35 35 PV -1000 -1000 FV 1000 1000 If interests rates rise 1.25% on an annual basis, what...
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Bond X Bond Y N (semi-annual) 10 12 Rd (semi-annual) 3.5% 3.5% PMT (semi-annual) 35 35 PV -1000 -1000 FV 1000 1000
If interests rates rise 1.25% on an annual basis, what will bethe change in value of price due to duration for Bond X? and BondY?
| Bond X | Bond Y | |
| N (semi-annual) | 10 | 12 |
| Rd (semi-annual) | 3.5% | 3.5% |
| PMT (semi-annual) | 35 | 35 |
| PV | -1000 | -1000 |
| FV | 1000 | 1000 |
If interests rates rise 1.25% on an annual basis, what will bethe change in value of price due to duration for Bond X? and BondY?
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Bond XBond YN (semi-annual)1012Rd (semi-annual)3.5%3.5%PMT (semi-annual)3535PV-1000-1000FV10001000If interests rates rise 1.25% on an annual basis, what will bethe change in value of price due to duration for Bond X? and BondY?
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