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29. Consider a 12 -year 5.5% coupon bond and a nine-year 7.5% coupon bond. Without making any calculations, which bond do you believe is more

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29. Consider a 12 -year 5.5% coupon bond and a nine-year 7.5% coupon bond. Without making any calculations, which bond do you believe is more sensitive to interest rate changes? Explain. 30. Take the two bonds from question #29 and assume that the YTM for both bonds is 7.0%. Compute their prices. If the YTMs on the two bonds decline to 6.0%, what will be the percentoge change in each bond's price? $880.86;$1,032.58;8.77%;6.73%

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