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Silicon Mountain Bank owns $100,000,000 of 20 year annual pay bonds with a coupon of 2%. If interest rates rise to 5% and Silicon Mountain

Silicon Mountain Bank owns $100,000,000 of 20 year annual pay bonds with a coupon of 2%. If interest rates rise to 5% and Silicon Mountain Bank panics and sells their bonds, how much money will they lose in dollars? How much will they lose on a percentage basis? 2 answers

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