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The bonds of ADL Ltd have a maturity of 10 years and are currently selling at a discount to their face value. If the bonds

The bonds of ADL Ltd have a maturity of 10 years and are currently selling at a discount to their face value. If the bonds market yield rises unexpectedly, what is most likely to happen to the price of the bonds?

A) The bonds will now sell at a smaller discount

B) The bonds will now sell at a larger discount

C) The bonds will now sell at a small premium

D) The bonds will now sell at a large premium

E) One cannot say anything about the price of the bonds without additional information

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