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Bond A matures in 2 years and bond B matures in 30 years. If interest rate in market suddenly increases by 25 basis points, then:
- Bond A matures in 2 years and bond B matures in 30 years. If interest rate in market suddenly increases by 25 basis points, then:
- Bond A price will increase more than bond B price
- Bond B price will increase more than bond A price
- Bond A price will decrease more than bond B price
- Bond B price will decrease more than bond A price
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