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3. How much would the price of a 8-year bond with 10% coupon interest rate change, if the market rate of return (Rd) on the
3. How much would the price of a 8-year bond with 10% coupon interest rate change, if the market rate
of return (Rd) on the bond increase from 5% to 10%?
a. Decrease 50.00%
b. Decrease 32.32%
c. Decrease 24.42%
d. Increase 32.32%
e. Increase 24.42%
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