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7-7 Interest Rate Sensitivity An investor purchased the following5 bonds. Each bond had a par value of $1,000 and an 8% yield to maturity (YTM)

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7-7 Interest Rate Sensitivity An investor purchased the following5 bonds. Each bond had a par value of $1,000 and an 8% yield to maturity (YTM) on the purchase day. Immediately after the investor purchased them, interest rate fell and each then had a new YTM of 7%. What is the percentage change in price for each bond after the decline in interest rates? Fill in the following table: Bond Price 8% Bond Price 796 Percentage Change 10-year, 10% annual coupon

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