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#5) A ten-year annual pay bond with a 5% coupon rate is trading with a market yield of 7.75%. What is the percentage change in

#5) A ten-year annual pay bond with a 5% coupon rate is trading with a market yield of 7.75%. What is the percentage change in price if the market yield decreases by 75 basis points immediately after the bond is issued?

A) 5.37%

B) 5.61%

C) 5.77%

D) 5.67%

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