Question: D Question 17 Apharmaceutical form issues two different bonds. Bond Short and Bond Long. Bond Short has a five year term and Bond Long has

D Question 17 Apharmaceutical form issues two different bonds. Bond Short

D Question 17 Apharmaceutical form issues two different bonds. Bond Short and Bond Long. Bond Short has a five year term and Bond Long has a 20 year term Both bonds initially sell at par. Soon after issuing these bonds, the market interest rate drops substantially. What are the new relative prices of Bond Short and Bond Long? Price Bond Long Price Bond Short - $1000 Price Bond Long Price Bond Short > $1000 Price Bond Long Price Bond Short $1000 Price Bond Long Price Bond Short

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