Bond A has a coupon of 4% and a maturity date of January 1, 2025. Bond...
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Bond A has a coupon of 4% and a maturity date of January 1, 2025. Bond b has a coupon of 7% and a maturity date of January 1, 2025. How would the price changes in the two bonds compare if interest rates fall by 1% ? (Assume all other factors remain unchanged). The price of bond B will increase by more than the price of bond A The price change will be approximately the same amount for both bonds The price of bond A will decrease more than the price of bond B The price of bond A will increase by more than the price of bond B Bond A has a coupon of 4% and a maturity date of January 1, 2025. Bond b has a coupon of 7% and a maturity date of January 1, 2025. How would the price changes in the two bonds compare if interest rates fall by 1% ? (Assume all other factors remain unchanged). The price of bond B will increase by more than the price of bond A The price change will be approximately the same amount for both bonds The price of bond A will decrease more than the price of bond B The price of bond A will increase by more than the price of bond B
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