Suppose that during the to start with hour of Procedure in the cash marketplaces right now, the time period structure shifts and the generate to maturity of all these bonds alterations to 10%. Exactly what is the reasonable cost of Each individual bond now?
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Suppose that in the 2nd hour of trading, the yield to maturity of each one of these bonds alterations over again to 8%. Now what is the reasonable price of Just about every bond?
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