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What is the new price of bonds a and bond x respectively

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Reference no: EM132729853

Both Bond A and Bond X have 7.3% coupons, make semiannual payments, and are priced at par value of $1,000. Bond A has three years to maturity, whereas Bond X has 20 years to maturity.

Problem 1) What is the YTM for each bond?

Problem 2) If interest rates suddenly rise by 2 percentage points, what is the new price of Bonds A and Bond X respectively?

Reference no: EM132729853

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