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Imagine you have two bonds of 3-year and 10-year maturity with the same principal value. They pay the same semi-annual coupons. Suddenly, the YTM decreases.

Imagine you have two bonds of 3-year and 10-year maturity with the same principal value. They pay the same semi-annual coupons. Suddenly, the YTM decreases. All else equal, which of the two bonds will have bigger price movement and in what direction?

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