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3. John Glenn thinks that the Federal Reserve policy is going to push the interest rates...

3. John Glenn thinks that the Federal Reserve policy is going to push the interest rates down. He is considering keeping only one of the three bonds in his portfolio. He knows that bond A has a duration of 4.434, bond B has a duration of 4.677, and bond C has the following characteristics: Par Value 1,000 Life 5 years Coupon Rate 5% Discount rate 14 percent Which one of the three bonds should he keep? Why? Explain.  

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