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ABC company has two bonds outstanding that are the same except for the maturity date. Bond D matures in 4 years, while Bond E matures
ABC company has two bonds outstanding that are the same except for the maturity date. Bond D matures in 4 years, while Bond E matures in 7 years. If the required return changes by 5 percent, then ________.
A. bond D will have a greater change in price
B. bond E will have a greater change in price
C. the price of the bonds will be constant
D. the percentage price change for the bonds will be equal
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