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What is the percentage change in thee bond price

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Bond-A and Bond-B has same coupon rate of 8% , make semi-annual coupon payment and are priced at par. Bond-A has 3 years to maturity and Bond-B has 20 years to maturity. If the interest rate suddenly falls by 2%/rise by 2% , what is the percentage change in thee bond price. What does it tell about the interest rate risk of longer term bonds.

Reference no: EM131426359

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