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Interest rates: 3 . 1 2 3 0 % ( r 0 ) , 5 . 2 1 3 6 % ( r 1 ,
Interest rates: rrHrLrHHrHL and rLL Bond A: $ par, a remaining maturity of years, coupon payable annually, callable at $ and $ in Year and Year from now, respectively, and putable at par in both Year and Year from today. Bond B shares the same characteristics as those of Bond A except that it is not putable. Bond C shares the same characteristics as those of Bond A but is not callable. Compute the price differences in absolute value between Bonds A and B and between Bonds A and C respectively.
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