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Interested in bond market, you decided to invest in two bonds with the same features except for time to maturity. These two bonds have $1000

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Interested in bond market, you decided to invest in two bonds with the same features except for time to maturity. These two bonds have $1000 face value, semiannual coupon payments with 10% coupon rate, but Bond A matures in 3 years while Bond B matures in 30 years. Q5. (5pts) When you bought these bonds, the market rate for bonds similar to Bond A was 10% year, whereas market rate for bonds similar to Bond B was 12\%/year (Bond B is longerterm, hence, higher interest rate - recall the maturity risk premium that you just went over in Part I.) a) What was the purchase price on Bond A ? N=I=PV=PMT=FV= b) What was the purchase price on Bond B ? N=,I=PV=PMT=FV=

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