Consider a corporate bond with 10 years until maturity, trading at par (M=100,000), with a semi-annual yield to maturity of 3.5% (the semi-annual coupon rate is also 3.5%). Also consider a Treasury bond with 7 years until maturity, also trading at par (M=100,000), with a semi-annual yield to maturity 3% (the semi-annual coupon rate is also 3%).

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