Please Help (39)

Two bonds have par values of $1,000. One is a 4%, 16-year bond priced to yield 10.0%. The other is a(n) 7.5%, 23-year bond priced to yield 5.5%. Which of these two has the lower price? (Assume annual compounding in both cases.) The price, PV, of the 4%, 16-year bond is $ The price, PV, of the 7.5%, 23-year bond is $ (Round to the nearest cent.) Which of these two has the lower price? (Select the best answer below.) (Round to the nearest cent.) O The 4%, 16-year bond has lower price of $530.58. The 7.5%, 23-year bond has lower price of $530.58