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Assume that coupon interest payments are made semiannually and that par value is $1,000 for both bonds. Coupon rate Time to maturity Required return 4.50%

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Assume that coupon interest payments are made semiannually and that par value is $1,000 for both bonds. Coupon rate Time to maturity Required return 4.50% 5 years 7,00% 4.50% 25 years 7.03% a. Calculate the values of Bond A and Bond B. (Round your answers to 2 decimal places,) Bond value A Bond value B b. Recalculate the bonds' values if the required rate of return changes to 8.72%. (Round your answers to 2 decimal places) Bond value A Bond value B c. Calculate the increase or decrease in bond value based on the change in required return. (Round your answers to 2 decimal plac

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