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Suppose that in the 2nd hour of buying and selling, the yield to maturity of investigate this site every one of these bonds modifications once more to eight%. Now exactly what is description the good price of Every single bond?
d. we will say the interest fee threat is often a functionality on the maturity on the bond. Higher the matrurity of the bond, useful source greater is its sensitivity to vary out there fascination rates. This is evident from the above mentioned tables.
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