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Business, 20.08.2019 03:30 patriots2833

You own two bonds, each of which currently pays semiannual interest, has a coupon rate of 6 percent, a $1,000 face value, and 6 percent yields to maturity. bond a has 12 years to maturity and bond b has 4 years to maturity. if the market rate of interest rises unexpectedly to 7 percent, bond will be the most volatile with a price decrease of percent.
a) a; 5.73 b) a; 6.08 c) a; 7.94 d) b; 3.39 e) b; 4.51

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