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    Exam 25: Interest Rate and Bond Derivatives
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    If Next Year's Bond Prices for 3-Year Zero Coupon Bonds
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If Next Year's Bond Prices for 3-Year Zero Coupon Bonds

Question 15

Question 15

Multiple Choice

If next year's bond prices for 3-year zero coupon bonds may be either 0.8923 or 0.8644,what is the yield volatility?


A) 12.7%
B) 13.7%
C) 14.7%
D) 15.7%

Correct Answer:

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