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As we have learned, bond prices change a as a result of a change in interest rates. Based on what we learned about time value
As we have learned, bond prices change a as a result of a change in interest rates. Based on what we learned about time value of money, which bond would you expect to be most affected by a change in interest rates - a bond with a par value of $1,000, a coupon rate of 10% and 10 years left to maturity, or an identical bond with 2 years left to maturity? Explain why. Own words
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