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Both bond A and bond B have 8.8 percent coupons and are priced at par value. Bond A has 9 years to maturity, while bond B has 18 years to maturity. . If interest rates suddenly rise by 1.4 percent, what is the percentage change in price of bond A and bond B? If interest rates suddenly fall by 1.4 percent instead, what would be the percentage change in price of bond A and bond B?

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Financial Management, Finance

Category:- Financial Management
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