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You are given information on the bonds below. If the market rates of interest (YTMs) of all the bonds increase by 1%, which bond will
You are given information on the bonds below. If the market rates of interest (YTMs) of all the bonds increase by 1%, which bond will experience the greatest decline in price? Briefly explain your answer. Coupon rate Time to maturity Bond A 3.0% 14 years Bond B 5.0% 9 years Bond C 7.0% 4 years Bond D 1.0% 19 years
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