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Consider a Bond That Pays Annually an 8% Coupon with 20

Question 113

Multiple Choice

Consider a bond that pays annually an 8% coupon with 20 years to maturity.The percentage change in the price of the bond if its yield to maturity increases from 5% to 7% is closest to:


A) 22.5%.
B) 24.5%.
C) -22.5%.
D) -19.5%.

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