What conclusion can you draw from theses examples

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Reference no: EM132038816

Consider the follwing bond:annual coupon 5%, .maturity 5 years, annual compounding frequency.

1. What is its relative price change if its required yield increases from 10% to 11%

2. What is its relative price change if its required yield increases from 5% to 6%

3. What conclusion can you draw from theses examples? Explain

Reference no: EM132038816

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