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Consider 3 bonds, A, B and C. All 3 bonds pay 5.00% semi-annual coupons and are currently valued at $1,000. Bond A matures in 15

Consider 3 bonds, A, B and C. All 3 bonds pay 5.00% semi-annual coupons and are currently valued at $1,000. Bond A matures in 15 years; Bond B matures in 10 years; Bond C matures in 5 years.

If the YTM increases to 6.00%, which bond will realize the greatest change in market value?Explain.

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