Consider two bonds, a 3-year bond paying an annual coupon of 6.70% and a 10-year...
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Accounting
Consider two bonds, a 3-year bond paying an annual coupon of 6.70% and a 10-year bond also with an annual coupon of 6.70%. Both currently sell at a face value of $1,000. Now suppose interest rates rise to 12%.
What is the new price of the 3-year bonds?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
What is the new price of the 10-year bonds?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
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