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Consider two bonds, a 3-year bond paying an annual coupon of 6.80% and a 10 year bond also with an annual coupon of 6.80%. Both

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Consider two bonds, a 3-year bond paying an annual coupon of 6.80% and a 10 year bond also with an annual coupon of 6.80%. Both currently sell at a face value of $1,000. Now suppose interest tates rise to 11%. o. What is the new price of the 3 year bonds? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. What is the new price of the 10-year bonds? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. Which bonds are more sensitive to a change in interest rates

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