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Question 2 Assume the interest rate for all maturities is 5% and that the face value of the bonds equals $1000. a) What is the

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Question 2 Assume the interest rate for all maturities is 5% and that the face value of the bonds equals $1000. a) What is the price today of a 5-year bond paying a 10% coupon rate with annual coupons? b) What is the price today of a 30-year zero coupon bond? c) Which bond's price will have a larger percentage change if interest rates rise to 8%? [2m] [2m] [4m]

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