Suppose that there is a gilt Tr 7.5pc '06 in 2006 with interest yield 7,32% and redemption yield 4.31%. How can I compute the price of this gilt per 100 face value. The problem is that the numbers I get from using interest yield and redemption yield are different. Suppose that the central bank reduces its repo rate from 4.5% to 4.25%, how is that going to affect the gilt price>


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