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What are the bond durations

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Reference no: EM133123684

You have two bonds with the following characteristics:

Characteristics Bond A Bond B

Coupon 4.5% 5.0%

Years to Maturity 10 8

Par Value $1,000 $1,000

Price $880.00 $911.00

a. What are the bond durations? semi-annual payments of coupons for bonds

b. If rates rise to 5.5%, what are the new prices for each bond

Reference no: EM133123684

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