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Business, 14.02.2021 22:10 msjuly723

Both Bond Bill and Bond Ted have 11.8 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 7 years to maturity, whereas Bond Ted has 24 years to maturity. Both bonds have a par value of 1,000. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?

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