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you own 2 bonds. Bond A has a Macaulay duration of 7.5 years and Bond B has a Macaulay duration of 8.8 years. If interest
you own 2 bonds. Bond A has a Macaulay duration of 7.5 years and Bond B has a Macaulay duration of 8.8 years. If interest rates increase from 5.4% to 7.0% which bond will have a LARGER decline in its price?
A Neither. Both will decline by the same amount
B Bond B
C Bond A
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