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Consider two 10 -year coupon bonds with coupon rates of 5% and 7%, respectively. Assume...

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Consider two 10 -year coupon bonds with coupon rates of 5% and 7%, respectively. Assume that coupons are paid once a year. Both bonds are callable at 1100 . Currently, both bonds are priced with a YTM of 6%. What will be the price change on each bond if the yield suddenly falls to 5%. 4. The bonds will be called immediately when the present value exceeds the call price

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