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    Exam 6: Valuing Bonds
  5. Question
    Consider a Zero-Coupon Bond with 20 Years to Maturity
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Consider a Zero-Coupon Bond with 20 Years to Maturity

Question 73

Question 73

Multiple Choice

Consider a zero-coupon bond with 20 years to maturity.The amount that the price of the bond will change if its yield to maturity decreases from 7% to 5% is closest to:


A) $118.
B) -$53.
C) $53.
D) $673.

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