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Bonds A, B and Call have a maturity of 10 years and a yield to maturity of 7%. Bond As price exceeds its par value,
Bonds A, B and Call have a maturity of 10 years and a yield to maturity of 7%. Bond As price exceeds its par value, Bond B's price equals its par value, and Bond Cs price is less than its par value. None of the bonds can be called. Which of the following statements is CORRECT? Bond C sells at a premium over its par value the yield to maturity on each bond increases to 8%, the prices of all three bonds will decine. or the yield to maturity on the three bonds remains constant, the prices of the three bonds will remain the same over the next year O Bond A has the most price risk If the yield to maturity on each bond decreases to 6%. Bond A will have the largest percentage increase in its price
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