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If a 10% government bond's yield changes from 9% to 11% what will be the effect on its price? The bond will no longer sell
If a 10% government bond's yield changes from 9% to 11% what will be the effect on its price?
The bond will no longer sell at a premium but will instead trade at a discount.
The bond will no longer sell at a discount and will instead trade at a premium.
The bond will still sell at a premium but not so much as before.
Nothing will happen to the price of the bond as that is fixed at issue.
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