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the given in pic 1 You are provided with the following characteristics for different bonds. Assume that the yield-to-maturity for all bonds is 9%. Bonds
the given in pic 1
You are provided with the following characteristics for different bonds. Assume that the yield-to-maturity for all bonds is 9%. Bonds Coupon Rate Maturity EX-Bond 6% paid annually 3 years TQ-Bond 7% paid semiannually 4 years FT-Bond 10% paid quarterly 3 years 4. Assume that the YTM decreases by 150 basis points, which of the following statements is TRUE about EX-Bond? * O A) Its modified duration is more than the old duration by 4 months and 16 days B) Its new price is higher than the old price by more than $35.9. C) The percentage variation in its price is lower than 1% D) All of the above E) None of the aboveStep by Step Solution
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