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You believe that interest rates will increase by 1% tomorrow morning. You are trying to decide which bond to buy. Bond A is a regular

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You believe that interest rates will increase by 1% tomorrow morning. You are trying to decide which bond to buy. Bond A is a regular bond with a coupon rate of 2% and 10 years to maturity. Bond B is a regular bond with a coupon rate of 5% and 10 years to maturity, Bond C is a regular bond with a coupon rate of 8% and 10 years to maturity and Bond D is a regular bond with a coupon rate of 12% and 10 years to maturity. Coupons are paid annually. Which bond should you purchase? Bond D Bond C Bond A Bond B

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