Question: [ B ] Ms . Alumm realizes that in addition to determining the current prices of these bonds, she would also like to know how

[B] Ms. Alumm realizes that in addition to determining the current prices of these bonds, she would also like to know how these prices might respond to changing interest rates once her company has purchased them.
After purchasing the bonds at an \(8\%\) bond-equivalent yield, what would happen to the price of each bond, and how much money would the company make if market yields on Patriot bonds fall to \(6\%\)?... rise to \(10\%\)?
[ B ] Ms . Alumm realizes that in addition to

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