Two bonds have par values of $1,000. One is a 6%, 15-year bond priced to yield 8.0%. The other is a(n) 7.5%, 21-year bond priced to yield 6.5%. Which of these two has the lower price? (Assume annual compounding in both cases.)

The price, PV, of the 6%, 15-year bond is $________. (Round to the nearest cent.)

The price, PV, of the 7.5%, 21-year bond is $_________. (Round to the nearest cent.)

Which of these two has the lower price?(Select the best answer below.)

[] The 7.5%, 21-year bond has lower price of $828.81.

[] The 6%, 15-year bond has lower price of $828.81.