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15. Imagine you are investing for one year and are considering three different bonds, each with...

15. Imagine you are investing for one year and are considering three different bonds, each with a $1000 face value: A one-year treasury bill. A two-year zero coupon Treasury. A ten-year zero coupon Treasury. Today, each bond has a 4% yield to maturity. For each of the following scenarios, compute the return you'd get on each of the three bonds under consideration. A) Yields increase to 5%. B) Yields fall to 2%. Show all calculations.

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Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 8 months ago
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