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Consider the following three bonds: Bond Price Coupon Rate Time-to-Maturity A 96.000 8% 6 years B 98.000 9% 8 years C 105.000 9% 6 years

Consider the following three bonds:

Bond

Price

Coupon Rate

Time-to-Maturity

A

96.000

8%

6 years

B

98.000

9%

8 years

C

105.000

9%

6 years

Which bond will most likely experience the smallest percentage change in price if the market discount rate for all three bonds increases by 100 basis points? Explain your logic in 2-4 sentences. Show Calculations and Formulas of how you arrived to this answer.

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