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Assume the interest rates on 10-year Treasury bonds rises from about 2.2% to a more traditional yield of about 5.0%. What is the potential consequence

Assume the interest rates on 10-year Treasury bonds rises from about 2.2% to a more traditional yield of about 5.0%. What is the potential consequence for the current bondholders of long-term bonds should they try to sell them before maturity?

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Investors will experience a substantial loss.

Investors will experience neither losses nor gains.

Investors will experience a substantial gain.

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