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You have an investment horizon of 6 years. You choose to hold a bond with a duration of 10 years. Your realized rate of return

You have an investment horizon of 6 years. You choose to hold a bond with a duration of 10 years. Your realized rate of return will be larger than the promised yield on the bond if ________.

Question 43 options:

A)

interest rates fall

B)

interest rates increase

C)

The answer cannot be determined from the information given.

D)

interest rates stay the same

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