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Two bonds have par values of $1,000. One is a 5.5%, 18-year bond priced to yield 8.5%. The other is a(n) 9%, 21-year bond priced
Two bonds have par values of $1,000. One is a 5.5%, 18-year bond priced to yield 8.5%. The other is a(n) 9%, 21-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 5.5%, 18-year bond is $. (Round to the nearest cent.) The price, PV, of the 9%, 21-year bond is $ (Round to the nearest cent.) Which of these two has the lower price? (Select the best answer below.) O The 9%, 21-year bond has lower price of $728.34. The 5.5%, 18-year bond has lower price of $728.34
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