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We expect the yields of maturity to increase by 1% from their present level. We have a 25 year 8% paying bond with a required

We expect the yields of maturity to increase by 1% from their present level. We have a 25 year 8% paying bond with a required rate of 7%. We want to switch to a 4 year 8% bond with a market rate of 6%. What shall we gain if we act on our expectation, and it transpires. If rates instead decrease, what will be the result?

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