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Bond A has a duration of 5 years. If the bond's yield, which is currently 8%, goes up by 10 basis points, how do you

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Bond A has a duration of 5 years. If the bond's yield, which is currently 8%, goes up by 10 basis points, how do you expect the bond price change? Increase by 0.463% Decrease by 0.463% Increase by 0.528% Decrease by 0.528% Which bond has higher interest rate sensitivity? Bond A: 6% coupon, 20-year maturity, sell at par value Bond B: 6% coupon, 20-year maturity, sell below par value (Hint: discount bonds have YTM > coupon rate, bonds selling at par have YTM = coupon rate) Bond A Bond B

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