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Question 13 (5 points An increase in interest rates will be the best effect on the price of a bond with a A A 10-year

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Question 13 (5 points An increase in interest rates will be the best effect on the price of a bond with a A A 10-year maturity bond with a coupon of selling $1,000 (par) B A 10-year maturity bond with a couponoff selling 5900 A 20.year maturity bond with a coupon of selling at 1.000 (pur) D. A 20-year maturity bond with a coupon of selling 5900 E None of the shore Justification: Question 14 (5 points): A coupon bond selling at paris paying 8 couponsommally. A loth T-bill with a face value of $10,000 currently selling at $9.940. The EAR of the Tbilis 0.60% and the EAR of the bond is 5.00% B. The EAR of the Twill is 7.49% and the BAR of the bond is 8.00% C The FAR of the T-7.49% and the FAR of the bond is 8.16% D. The KAR of the T-billis 8.16% and the FAR of the bond is 79% E None of the above Justification

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