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Bonds A and B are both priced at par of $1,000. Bond A has $90 annual coupons and 10 years to maturity (yield is 9%

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Bonds A and B are both priced at par of $1,000. Bond A has $90 annual coupons and 10 years to maturity (yield is 9% ). Bond B has $10 annual coupons and 9 years to maturity (yield is 1% ). Shock both yields up by 1%. Explore the price sensitivities of the two bonds. Both bonds drop to about $920 Both bonds drop to about $940 A drops to about $920 and B drops to about $940 A drops to about $940 and B drops to about $920

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