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Suppose you buy both a $ 1 , 0 0 0 , 5 % annual coupon bond with a maturity of 8 years and a
Suppose you buy both a $ annual coupon bond with a maturity of years and a zero coupon bond with a maturity of years. The yield is when you buy them, but changes to What will the new prices of the bonds be
Initial Yield
New Yield
FV of both bonds $
Coupon on coupon bond
Term of both bonds
The new price of zero coupon bonds will be $
Round your answer to the nearest two decimal places.
The new price of the bonds that pay coupons will be $
Round your answer to the nearest two decimal places.
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