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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)8%,24-year bond priced to
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)8%,24-year bond priced to yield 4.5%. 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.)
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