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Morgan, Inc. has 4.00% per annum coupon bonds outstanding. The bonds have twelve years left...

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Finance

Morgan, Inc. has 4.00% per annum coupon bonds outstanding. The bonds have twelve years left to maturity, make semi-annual coupon payments, and are currently priced to have a yield to maturity (YTM) of 5.00% per annum. If interest rates suddenly fall by 1.00% (100 basis points), what will be the percentage change in the price of the bonds?

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