If the required return changes by 15 percent which bond


The Aria Company has two bond issues outstanding. Both issues have 8% coupons, paid semi-annually, and both are rated "AA". Bond issue A matures in 5 years while Bond issue B matures in 7 years. If the required return changes by 15 percent, which bond will have the greatest change in price?

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Finance Basics: If the required return changes by 15 percent which bond
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