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Fill in the Blanks (10 points) An increase in the yield of a coupon bond _____(decreases/increases) the present value of its expected cash flows and

Fill in the Blanks

(10 points) An increase in the yield of a coupon bond _____(decreases/increases) the present value of its expected cash flows and therefore _____ (decreases/increases) the bonds price. A decrease in the yield of a coupon bond _____ (decreases/increases) the present value of its expected cash flows and therefore ____ (decreases/increases) the bonds price.

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