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Assume that all bonds pay annual coupons and have par values of $1,000 unless otherwise stated. 1. A 12-year, 5.5% bond has a YTM of

Assume that all bonds pay annual coupons and have par values of $1,000 unless otherwise stated. 1. A 12-year, 5.5% bond has a YTM of 5.0%. 3 pts a. Compute the percentage change in the bonds price if the YTM falls to 4.0%. b. Compute the percentage change in the bonds price if the YTM rises to 6.0%.

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