Calculate value of each bond and relative rate sensitivity

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Mr. Richards wants additional analysis on these bonds. He wants you to assume that a year has transpired and to make the following assumptions about the bonds: each bond is exactly 1 year shorter in term rate levels ar 1.75% for 9 years, 1.50% for 6 years and 1.25% for 4 years. Calculate the value of each bond and their relative rate sensitivity from a +/- 50 BPS rate change.

Reference no: EM131324572

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