Lucia just bought two coupon bonds, one with a face value of ($1,000) and the other with

Question:

Lucia just bought two coupon bonds, one with a face value of $$1,000$ and the other with a face value of $$5,000.$ Both bonds have a coupon rate of 5% and sold at par today. Calculate both bonds’ current yield and both bonds’ rate of return if Lucia is able to sell these bonds one year later for $$100$ more than the buying price. Can you estimate what happened to the interest rate over that year?

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