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Consider the case of two 10-year bonds. Bond A, face value 1.000, coupon 5,2%, and bond B, face value 1.000, coupon 7,4%. Take 8% as

Consider the case of two 10-year bonds. Bond A, face value 1.000, coupon 5,2%, and bond B, face value 1.000, coupon 7,4%. Take 8% as the required return by the market on such bonds. What bond will undergo a greater variation in price given any variation in market rates? What percentage, approximately?

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