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-yearbond priced to yield 8.0%. The other is a(n) 8.5%, 22-year bondpriced to yield 4.5%. Which of these two has the lower price?(Assume annual compounding in both cases.)
The price, PV, of the 6%, 20-year bond is $
The price, PV, of the 6%, 20-year bond is $