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Consider two zero coupon bonds in which you receive $ 1 0 0 at the maturity date, one maturing in 3 years and one maturing

Consider two zero coupon bonds in which you receive $100 at the maturity date, one maturing in 3 years and one maturing in 5 years. Both are currently priced to yield 7 percent. Calculate the current market value of each bond. Now suppose the yield to maturity falls to 5 percent. Calculate the percent change in the price of each bond as the yield went from 7 percent to 5 percent.

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