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1. Chapter 11 - The concept of duration (6 points) In general when interest rates change so do bond prices. An increase in rates will

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1. Chapter 11 - The concept of duration (6 points) In general when interest rates change so do bond prices. An increase in rates will produce a drop in price. Decline in rates will boost prices. The length to maturity also affects the bond price. Explain how does the term to maturity or the duration of the bond affect a bond's price

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