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Percent does each bond''s price change

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Tiger, Inc., has a 10-year bond outstanding, coupon rate of 10% paid semiannually, and is currently priced at par, which is $1,000. Falcon Corp. has an identical bond, except that it pays a 3% coupon. If market interest rates suddenly drop by 2%, by what percent does each bond's price change? Circle the bond that is more sensitive to interest rate changes.

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Reference no: EM132234859

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