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whitywhite11 whitywhite11
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11 months ago
A 12-year Treasury bond has a 9% coupon, and a 9-year Treasury bond has a 12% coupon. Both bonds have the same yield to maturity. If the yield to maturity of both bonds decreases by the same amount, which of the following statements would be correct?


▸

The prices of both bonds would increase by the same amount.



▸

The prices of both bonds would decrease by the same amount. 



▸

Both bonds would increase in price, but the 12-year bond would have the greater percentage increase in price.



▸

One bond’s price would decrease, while the other bond’s price would increase.

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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mmorris1537mmorris1537
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whitywhite11 Author
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11 months ago
This calls for a celebration Person Raising Both Hands in Celebration
DragonHeart
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Helped a lot
Mkersey12
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Thanks
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