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Business, 22.04.2020 02:44 aliviafrancois2000

Both Bond Bill and Bond Ted have 12.6 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 6 years to maturity, whereas Bond Ted has 23 years to maturity. Both bonds have a par value of 1,000. a. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?

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