Question: To keep things simple, assume a zero - coupon bond. Bond X pays $ 2 0 , 0 0 0 in 1 0 years. Bond

To keep things simple, assume a zero-coupon bond. Bond X pays $20,000 in 10 years. Bond Y pays $20,000 in 20 years.
Suppose the interest rate increases to 14 percent. Using the rule of 70, the value of Bond X is now approximately $
, and the value of Bond Y is approximately $
. Now, suppose the interest rate is 7 percent. Using the rule of 70, the value of Bond X today is approximately $
, and the value of Bond Y today is approximately $
.
Note: Round all your answers in whole number (no decimal). In addition, do not include comma (,) or $ in your answers.

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