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Your parents own the following two bonds: 30-year, $1,000 face value, paying $970 at the end of each year, with a yield to maturity (YTM)

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Your parents own the following two bonds: 30-year, $1,000 face value, paying $970 at the end of each year, with a yield to maturity (YTM) of 7%; 2-year, $1,000 face value, paying $60 at the end of each year with a YTM of 6%. Both currently sell at par. If you are concerned that interest rates may increase by three percentage points, you will advise them to: sell the 2-year and buy additional 30-year bond tell the 30-year and buy additional 2-year bonds withdraw funds front the bank to buy more bonds sell both bonds and put the money In a savings account

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