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Consider two 10 year bonds. One bond pays $25 every six months and the other pays $40 every six months. If market interest rates inrease


 Consider two 10 year bonds. One bond pays $25 every six months and the other pays $40 every six months. If market interest rates inrease suddenly by 1%, will the price of these bonds go up or down? Which will experience the biggest percentage change in price? 

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