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NorthSouth Company has bonds with 20 years to maturity, a face value of $1,000, coupon rate of 9 percent and YTM of 7 percent. The
NorthSouth Company has bonds with 20 years to maturity, a face value of $1,000, coupon rate of 9 percent and YTM of 7 percent. The company makes semiannual payments. What is the percentage charge in the price of this bond if the market yield suddenly decreases to 5 percent?
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