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Bond A (Short Term) Bond B (Long Term) Coupon Rate 10% 110% Interest Paid Annually Annually Face Value $1,000 $1.000 Maturity 1 year from today

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Bond A (Short Term) Bond B (Long Term) Coupon Rate 10% 110% Interest Paid Annually Annually Face Value $1,000 $1.000 Maturity 1 year from today 15 years from today 6. What would be the value in dollars of each of these bonds when the required interest rate (yield to maturity) is 10 percent? 7. What would be the value in dollars of each of these bonds when the required interest rate (yield to maturity) is 5 percent? What would be the value in dollars of each of these bonds when the required interest rate (yield to maturity) is 15 percent? Based on your answers above, what is true about the direction and magnitude of the change in bond prices relative to a change in interest rates

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