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Two bonds have par values of $1,000. One is a 5.5%, 15-year bond priced to yield 9.0%. The other is a(n) 8.5%, 20-year bond priced
Two bonds have par values of $1,000. One is a 5.5%, 15-year bond priced to yield 9.0%. The other is a(n) 8.5%, 20-year bond priced to yield 5.5%. Which of these two has the lower price? (Assume annual compounding in both cases.) Question: The price, PV, of the 5.5%, 15 year bond is $(blank) Question: The price, PV, of the 8.5%, 20 year bond is $ (blank)
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