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An investor has two bonds in their portfolio paying the same coupon rate, one with 3 years until maturity and the other with 10 years
An investor has two bonds in their portfolio paying the same coupon rate, one with 3 years until maturity and the other with 10 years until maturity. Which of the following scenarios is more likely if interest rates increase by 2%? The 3-year bond will decrease more in price The 10-year bond will decrease more in price Both bonds will decrease in price by the same proportion Neither bond will decrease in price, but their yields will increase
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