Enders Corp. has two bonds. One bond has a 6% annual coupon rate and the...
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Enders Corp. has two bonds. One bond has a 6% annual coupon rate and the other is a zerocoupon bond. Both bonds have a $1,000 par value. For each bond, calculate the bond price and the percentage change in price when yield to maturity changes, as described below. a. Ten years to maturity and YTM goes from 6% to 7%. b. Twenty years to maturity and YTM goes from 6% to 7%. c. Ten years to maturity and YTM goes from 6% to 5%. d. Twenty years to maturity and YTM goes from 6% to 5%. e. Compare and contrast your answers for parts a. through d. and discuss/comment on the impact of YTM changes
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