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Suppose you buy a 7 % coupon, 2 0 - year bond today when it's first issued. If interest rates suddenly rise to 1 5

Suppose you buy a

7 %

coupon,

20 -

year bond today when it's first issued. If interest rates suddenly rise to

15 %,

what happens to the

value of your bond?

the price of the bond will fall

the price of the bond will raise

*

Please explain with details.

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