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You are trying to price two bonds that have the same maturity and par value but different coupon rates and different required rates of return.

You are trying to price two bonds that have the same maturity and par value but different coupon rates and different required rates of return. Both bonds mature in 3 years and have par values of $1,000. One bond has a coupon of 5% and a required rate of return of 7%. The other bond has a coupon of 7% and a required rate of return of 9%. What should the difference in price between these two bonds be?

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