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Can you help questions 15 thru18 15) Consider the following three bonds currently trading at Par Maturity (yrs) 10 5 BondCoupon Rate 6% 6% 8%

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15) Consider the following three bonds currently trading at Par Maturity (yrs) 10 5 BondCoupon Rate 6% 6% 8% Relative to Bond C, for a 200 basis point decrease in the required rate of return, Bond B will most likely exhibit a(n): a) Equal percentage price change b) Greater percentage price change c) Smaller percentage price change d) Cannot be determined 16) For question 15, which bond will most likely experience the greatest percentage change in price if the market discount rates for all three bonds increase by 100 bps? a) Bond A Page 5

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