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Chapter 11 Excel Application: Immunization
1. When rates increase by 100 bp, what is the change in the future sales
price of the bond?
2. What if rates increase by 200 bp? What is the change in the future sales
price of the bond?
The value of reinvested coupons?
3. What is the relation between price risk and reinvestment rate risk as we
consider larger
changes in bond yields?
