Question: 1. Consider the following two bond issues. Bond X: 2% 25-year bond Bond Y: 4% 30-year bond Neither bond has an embedded option. Both bonds

1. Consider the following two bond issues. Bond X: 2% 25-year bond Bond Y: 4% 30-year bond Neither bond has an embedded option. Both bonds are trading in the market at the same yield. Which bond will fluctuate more in (percentage) price when interest rates change? Why? (20%)

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