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Bond A and B both presently are selling at their par value of $1,000. Each pays interest of $120 annually. Bond A will mature in
Bond A and B both presently are selling at their par value of $1,000. Each pays interest of $120 annually. Bond A will mature in 5 years, while bond B will mature in 8 years. If the yields to maturity on the two bonds change from 10% to 13%, both bonds will decrease in value but bond B will decrease more than bond A both bonds will decrease in value but bond A will decrease more than bond B both bonds will increase in value but bond B will increase more than bond A both bonds will increase in value but bond A will increase more than bond B
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