Two bonds have par values of $1,000. One is a 6%, 20-year bond priced to yield 8.0%. The other is a(n) 8.5%, 22-y
Posted: Sun Jul 03, 2022 12:54 pm
Two bonds have par values of $1,000. One is a 6%,20-year bond priced to yield 8.0%. The other is a(n) 8.5%,22-year bond priced to yield 4.5%. Which of these two has thelower price? (Assume annual compounding inboth cases.)