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Eric owns a corporate bond with a coupon rate of 8% that matures in 10 years Rosa owns a corporate bond with a coupon rate
Eric owns a corporate bond with a coupon rate of 8% that matures in 10 years Rosa owns a corporate bond with a coupon rate of 12% that matures in 25 years. If interest rates go down, then OA the value of Eric's bond will decrease and the value of Rosa's bond will increase OB. the value of both bonds will increase. Oc the value of Rosa's bond will decrease more than the value of Eric's bond due to the longer time to maturity OD. the value of both bonds will remain the same because they were both purchased in an earlier time period before the interest rate changed
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