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    Bonds and Their Valuation - Time to Maturity

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    If interest rates rise after a bond issue, what will happen to the bond's price and YTM? Does the time to maturity affect the extent to which interest rate changes affect the bond's price? (Again, an example might help you answer this question.)

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    Say, a bond with a coupon rate of 8% with a maturity of 3 years was issued at ...

    Solution Summary

    The price of the bond if the rate did not change is computed.