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just these questions QUESTION 1 Bond A pays an annual coupon of $100. Bond B pays $40 coupon payments semi-annually. All else equal, which bond

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QUESTION 1 Bond A pays an annual coupon of $100. Bond B pays $40 coupon payments semi-annually. All else equal, which bond will have the higher duration? B AB QUESTION 2 Bond A has 3 years to maturity and Bond B has 30 years to maturity. If interest rates go up, all else equal, which bond will have the greater price decrease? B A-B QUESTION 3 Bond A sells at $900. Bond B sells at par. Both bonds have a coupon rate of 7%. All else equal, which bond has more interest rate risk? A-B QUESTION 4 Bond A sells at $1,100. Bond B sells at par. Both bonds have a yield of 6%. All else equal, which bond has more interest rate risk? B A-B QUESTION 5 Bond A has a coupon rate of 3% and Bond B is a zero-coupon bond. All else equal, if you expect interest rates to rise, which bond should you choose? (hint: since prices fall when interest rates rise, do you want one with high interest rate risk or low interest rate risk?) A AB QUESTION 6 Bond A sells at $1,100. Bond B sells at par. Both bonds have a coupon rate of 8%. All else equal, which bond has more interest rate risk? B A-B

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