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An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 10.50% annual coupon. Bond Alpha matures in

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An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 10.50% annual coupon. Bond Alpha matures in 5 years, while Bond Beta matures in 1 year. a) What will the value of each bond be if the going interest rate is 5%? b) Which bond will have the greater percentage change in price if interest rates increase by 1 percentage point? O a) Alpha = $1,238.12; Beta = $1,052.38 b) Beta will have a greater percentage change in price. Oa) Alpha = $1,000.00; Beta = $1,238.12 b) Alpha will have a greater percentage change in price. a) Alpha = $1,052.38; Beta = $1,000.00 b) Alpha will have a greater percentage change in price. a) Alpha = $1,052.38; Beta = $1,000.00 b) Alpha will have a greater percentage change in price. O a) Alpha = $1,052.38; Beta = $1,238.12 b) Beta will have a greater percentage change in price. a) Alpha = $1,238.12; Beta = $1,052.38 b) Alpha will have a greater percentage change in price

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