Which bond will have the greatest change in price

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Reference no: EM13301362

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?

Reference no: EM13301362

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