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Bond Coupon Rate Years to Maturity A 5.8% 3 B 5.8% 3 5.8% 7 D 6.6% 3 (Hint: You have all the information you need
Bond Coupon Rate Years to Maturity A 5.8% 3 B 5.8% 3 5.8% 7 D 6.6% 3 (Hint: You have all the information you need to answer this question. No calculations are required. You can answer based on theory alone because there is only one possible answer.) Based on your analysis you have determined that if the market interest and hence the yield on Bond A goes up by 1 basis point, the price of the bond will fall by $0.45. If the yield goes down by 1 basis point, which of the following is most likely to be the increase in the price of Bond A? a. $0.41 O b. $0.45 c. $0.47 d. $0.43
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