Question: a. Consider two zero-coupon bonds, A and B. Their required rates of return are both 6.3%. Bond A matures in 11 years; Bond B matures

a. Consider two zero-coupon bonds, A and B. Their required rates of return are both 6.3%. Bond A matures in 11 years; Bond B matures in 24 years. Due to the change in the interest rate, A and B's required return rates both increases by 1.6 percentage points. The decrease in B's price will be _____ percentage points greater than that of A's.

b. The coupon rate of a bond is 6.5% and it matures in 16 years. Given its current price, the yield to maturity is 6.2%. The risk-free interest rate is 5.9%. Its current yield is ____ %.

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