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Suppose you want to compare the price sensitivity of two 10 -year bonds. Suppose the U.S. announces that it expects the unemployment rate to increase
Suppose you want to compare the price sensitivity of two 10 -year bonds. Suppose the U.S. announces that it expects the unemployment rate to increase significantly this year, which results in an investor's required rate of return on a bond to decrease to 7%. Using this information, fill in the values for the percentage change in bond price, percentage change in k, and bond price elasticity for table
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