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2. Consider the following three bonds: Bond A B Price 95.000 101.000 88.000 Coupon Rate 7% 8% 7% Time-to-Maturity 5 years 5 years 6 years

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2. Consider the following three bonds: Bond A B Price 95.000 101.000 88.000 Coupon Rate 7% 8% 7% Time-to-Maturity 5 years 5 years 6 years Which bond will most likely experience the smallest percentage change in price if the market discount rate for all three bonds increases by 100 basis points? Explain your logic in 2-4 sentences

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