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Consider two bonds, a 3-year bond paying an annual coupon of 5.90% and a 10-year bond also with an annual coupon of 5.90%. Both currently
Consider two bonds, a 3-year bond paying an annual coupon of 5.90% and a 10-year bond also with an annual coupon of 5.90%. Both currently sell at a face value of $1,000. Now suppose interest rates rise to 9%. What is the new price of the 3-year bonds? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. What is the new price of the 10-year bonds? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Bond price
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