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25. Say you were investigating a high yield bond that was in significant distress as a prospective investment. What would be the price change (in
25. Say you were investigating a "high yield" bond that was in significant distress as a prospective investment. What would be the price change (in percentage terms) of both a 1-year bond and a 10-year bond, when the discount rate rose from 10% to 15%? a. The 1-year bond would have a 4.4% in increase in price, and the 10-year bond would have a 25.1% increase in price. b. The 1-year bond would have a 4.8% in decrease in price, and the 10-year bond would have a 38.6% decrease in price. c. The 1-year bond would have a 4.88 in increase in price, and the 10-year bond would have a 38.6% increase in price. d. The 1-year bond would have a 4.4% in decrease in price, and the 10-year bond would have a 25.1% decrease in price. e. The 1-year bond would have a 4.8% in increase in price, and the 10-year bond would have a 25.1% decrease in price
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