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Consider the following 4 bonds A B C D: (a) What is the percentage change in the price of each bond if its yields to

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Consider the following 4 bonds A B C D: (a) What is the percentage change in the price of each bond if its yields to maturity falls from 6% to 5% ? (b) From your calculation, how does interest rate risk change with maturity (if bonds have same coupon rate)? How does it change with coupon rate (if bonds have same maturity)

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