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1. Consider the following two bonds: Bond Yield Maturity Duration 10% 11 years 9.0 years B 6% 12 years 9.4 years Assuming that interest rates

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1. Consider the following two bonds: Bond Yield Maturity Duration 10% 11 years 9.0 years B 6% 12 years 9.4 years Assuming that interest rates increase, which of the following would be true? Bond A will decrease in value more than bond B (in percentage terms) Bond B will decrease in value more than bond A (in percentage terms) Bond A will increase in value more than bond B (in percentage terms) Bond B will increase in value more than bond A (in percentage terms)

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