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Consider two bonds, A and B. Both bonds presently are selling at their par value of $1,000. Each pays interest of $50 annually. Bond A

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Consider two bonds, A and B. Both bonds presently are selling at their par value of $1,000. Each pays interest of $50 annually. Bond A will mature in 8 years while bond B will mature in 12 years. If the yields to maturity on the two bonds change from 8% to 7%: Select one O a both bonds will increase in value, but bond A will increase less than bond B Ob both bonds will decrease in value, but bond A will decrease less than bond B O both bonds will increase in value, but bond A will increase more than bond B Od both bonds will decrease in value, but bond A will decrease more than bond B Oe None of the answers are correct

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