Two bonds have par values of $1,000. One is a 4%, 17 year bond priced to yield

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Two bonds have par values of $1,000. One is a 4%, 17 year bond priced to yield 8.5%. The other is a(n) 8%, 25-year bond priced to yield 5.0%. Which of these two has the lower price? (Assume annual compounding in both cases.)

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Posted Date: Dec 01, 2023 05:36 AM

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Two bonds have par values of $1,000. One is a 4%, 17 year bond priced to yield

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Bond 2 has the lower price Heres why Bond prices and yields are inversely rel... View the full answer

Fixed Income Analysis

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