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What happens to the price of a three-year bond with an interest rate (discount rate) of 8% when coupon rates change from 6% to 8%?
What happens to the price of a three-year bond with an interest rate (discount rate) of 8% when coupon rates change from 6% to 8%?
a. A price increase of $53.47
b. A price increase of $51.54
c. A price decrease of $53.47
d. A price decrease of $51.54
e. None of the above
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