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Musi Dowelani, is analysing two newly issued corporate debt securities for possible purchase by a client. Bond X is a noncallable 10-year coupon bond currently

Musi Dowelani, is analysing two newly issued corporate debt securities for possible purchase by a client. Bond X is a noncallable 10-year coupon bond currently trading at 102.50. Bond Y is a noncallable 10-year coupon bond currently trading at 98.25. Dowelani wants to ensure that her client is fully aware of any probable changes in the bonds' values as they approach maturity. 


Holding interest rates constant, how will each bond's price change as it approaches maturity?

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