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Consider two bonds, a 3 - year bond paying an annual coupon of 5 . 1 0 % and a 1 0 - year bond
Consider two bonds, a year bond paying an annual coupon of and a year bond also with an annual coupon of Both currently sell at a face value of $ Now suppose interest rates rise to
a What is the new price of the year bonds?
Note: Do not round intermediate calculations. Round your answer to decimal places.
b What is the new price of the year bonds?
Note: Do not round intermediate calculations. Round your answer to decimal places.
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