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Each of the option-free bonds listed below has a par value of $1,000: Bond 1 10 years Time to Maturity Annual Coupon Rate Market Discount

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Each of the option-free bonds listed below has a par value of $1,000: Bond 1 10 years Time to Maturity Annual Coupon Rate Market Discount Rate Bond 2 10 years 7.0% 6.5% 5.0% 6.5% Which of the following statements about the two bonds is MOST accurate? If the discount rate for each of the bonds remain at 6.5 percent for ten years, the passage of time will result in a decrease in value for: A. B. C. Bond 1 only. Bond 2 only. Both of the bonds

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