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14. 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

14. 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, blank percent. blank will be the less volatile with a price decrease of Bond A. B, 8.03% B. B, 3.44% C. A, 8.03% D. A, 3.44%
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14. 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 blank will be the less volatile with a price decrease of blank percent. A. B, 8.03% B. B, 3.44% C. A,8.03% D. A, 3.44%

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