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Title: Company A has two 9% coupon bonds outstanding. Each of the bonds pays interest annually. Bond A has ... Post by: flemingpk on Aug 6, 2023 Company A has two 9% coupon bonds outstanding. Each of the bonds pays interest annually. Bond A has 15 years to maturity and Bond B has 12 years to maturity. The current market rate of return is 7%. What will happen if the market rate of return decreases to 6%? ▸ The percentage change in the price of Bond A will be the same as the percentage change in the price of Bond B. ▸ The percentage change in the price of Bond A will be less than the percentage change in the price of Bond B. ▸ The percentage change in the price of Bond A will be greater than the percentage change in the price of Bond B. ▸ The price of the bonds will not change as the market rate of return has no effect on the value of the bond. Title: Re: Company A has two 9% coupon bonds outstanding. Each of the bonds pays interest annually. Bond A has ... Post by: navgil on Aug 6, 2023 Content hidden
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