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Suppose that in the second hour of buying and selling, the produce to maturity of these bonds adjustments over again to 8%. Now what is the good cost of Each and every bond?
d. we can say that the curiosity price danger is often a function with the maturity of your bond. Increased the matrurity of your bond, greater is its sensitivity to vary available in the market curiosity costs. This is obvious from the above mentioned tables.
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