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9. You have been offered a 6% 5 year Medical Lake water bond priced at $1150 and a 8% 7 year Cheney sewer bond priced
9. You have been offered a 6% 5 year Medical Lake water bond priced at $1150 and a 8% 7 year Cheney sewer bond priced at $1200. a. Which bond would you purchase if the current interest rate is 3%? b. Which bond has the greatest interest rate risk when the rate increases to 6%? 10. With the interest rates given fill in the blanks for the present value of a 10% 27 year Wilber school bond: Plot the relationship between the interest rate and price. P .04 10 .16
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