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Let's assume we have a 15 year coupon bond and a 25 year coupon bond. Both have identical coupons at 7.5% per annum paid semi-annually.

Let's assume we have a 15 year coupon bond and a 25 year coupon bond. Both have identical coupons at 7.5% per annum paid semi-annually. Currently the market interest rate is 8%.

What would be the respective change in each bond price be if interest rates increased to 9%?

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