Question: 4. Consider two bonds with $1,000 face values that carry coupon rates of 8%, make annual coupon payments, and exhibit similar risk characteristics. The first

4. Consider two bonds with $1,000 face values that carry coupon rates of 8%, make annual coupon payments, and exhibit similar risk characteristics. The first bond has 5 years to maturity whereas the second has 10 years to maturity. The appropriate discount rate for investments of similar risk is 8%. If this discount rale rises by two percentage points, what will be the respective percentage price changes of the two bonds

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