Question: A 5- year zero coupon bond and a 15- year zero coupon bond both carry a price of $ 7,500 and a market rate of

A 5- year zero bond and a 15- year zero bond both carry a price of $ 7,500 and a market rate of 8 percent. Assuming that the market rates on both bonds fall to 7 percent, calculate the percentage change in each bond’s price.

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