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2. Given the following information (60 points) Bond Price Coupon Rate Time-to-Maturity A 5% B 101.886 100.000 97.327 6% 5% 2 years 2 years 3

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2. Given the following information (60 points) Bond Price Coupon Rate Time-to-Maturity A 5% B 101.886 100.000 97.327 6% 5% 2 years 2 years 3 years Which bond offers the lowest yield-to-maturity? Which bond will most likely experience the smallest percent change in price if the market discount rates for all three bonds increase by 100 basis points? Explain answers in details

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