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Consider the following bonds with annual coupons, compounding annually, knowing that the current market rate for all new bonds (irrespective of time-to-maturity) is 3.5%. Bond

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Consider the following bonds with annual coupons, compounding annually, knowing that the current market rate for all new bonds (irrespective of time-to-maturity) is 3.5%. Bond Name Time to Maturity A Coupon Rate 3.5% 5.1% 2 B 2 What is the price difference between bond A and bond B per 1,000 of par? (i.e. answer the result of taking the price of A minus the price of B)

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