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Bond A matures in 10 years from today, while bond B matures in 20 years from today. Coupon rate for both are 5% Compounding takes
Bond A matures in 10 years from today, while bond B matures in 20 years from today.
Coupon rate for both are 5%
Compounding takes place annually. a. What are the prices of the two bonds if the market interest rate is 6%?
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