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9&10 please and thank you QUESTION 9 Which of the following statements is true? A. Bond prices vary directly with interest rates. B. High coupon
9&10 please and thank you
QUESTION 9 Which of the following statements is true? A. Bond prices vary directly with interest rates. B. High coupon bonds have higher bond price volatility than low coupon bonds. OC. Price volatility is inversely related to the yield to maturity at which the bond is selling O D. Bond duration decreases with maturity. QUESTION 10 A 6-year annual coupon bond with a par value of $1,000 has an 8% coupon rate. Currently, this is a par bond (sells for par value) in the market, and it has a duration of 5 years. If the YTM decreases to 7%, what is the predicted % change in price according to the duration concept? O A.4.67% OB. 4.63% O C.-4.67% OD.-4.63% Step by Step Solution
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