Bond Yields and Prices

Rate changes from 8-10%. Two bonds selling at 8% market rate: 15 year 10% bond -Price= $1,172.92. 30 year 10% bonds-Price = $1,226.23. Same bonds at 10% -both sell at par. 15 year change is 11.73%. 30 year change is 12.26% (30 year percentage change in price does not equal twice the 15 year … ................
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