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Business, 14.04.2020 21:04 weirdojuwin

Bonds A, B, and C all have a maturity of 10 years and a yield to maturity of 7%. Bond A's price exceeds its par value, Bond B's price equals its par value, and Bond C's price is less than its par value. Which of the following statements is CORRECT
a. If the yield to maturityon each bond decreases to 6%, Bond A will have the largest percentage increase in its price.
b. Bond A has the most interestrate risk.
c. If the yield to maturityon the three bonds remains constant, the prices of the three bonds will remain the same over the next year.
d. If the yield to maturityon each bond increases to 8%, the prices of all three bonds will decline. e.Bond C sells at a premiumover its par value.

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