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At what price is the yield of a 10-year, 10% bond equal to the yield of a 5-year, 4% bond whose price is $110?
At what price is the yield of a 10-year, 10% bond equal to the yield of a 5-year, 4% bond whose price is $110? The 10-year, 10% bond pays coupons once per year. The 5-year, 4% bond pays coupons every 6 months. Both bonds have a face value of $100. Please round your numerical answer to two decimal places.
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