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Consider a 10 year bond which pays 6% coupon annually and has a yield-to-maturity of...

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Accounting

Consider a 10 year bond which pays 6% coupon annually and has a yield-to-maturity of 8%. How much would the price of bond change if investors required return changes to 7% per year?

decrease by 6.98%

increase by 6.98%

increase by 7.38%

decrease by 7.38%

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