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Assume that all interest rates (i

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Assume that all interest rates (i.e. discount rates) in the economy rise from 5% to 10%. Conduct a price sensitivity analysis to show which of the following bonds has the most price risk.

1. An 8-year bond with 9% coupon rate
2. A 5-year bond with 4% coupon rate
3. A 10-year zero coupon bond

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