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George holds 2 bonds in his portfolio - an 8 . 5 % 2 - year bond and an 8 . 5 % 1 0
George holds bonds in his portfolio an year bond and an year bond. In the recent months, interest rates have been increasing and each bond now yields How would the rise in yield affect the price of the bonds?a The price of the year bond will fall and the price of the year bond will increase.b Both the year and the year bond will decrease in price, however the price of the year bond will have a larger percentage decrease.c Both the year and the year bond will increase in price, however the price of the year bond will have a larger percentage growth.d The price of the year bond will fall and the price of the year bond will increase.
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