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Two bonds have par values of $1,000. One is a 4%, 16-year bond priced to yield 10.0%. The other is a(n) 7.5%, 23-year bo
Posted: Wed Jul 06, 2022 6:40 pm
by answerhappygod
- Two Bonds Have Par Values Of 1 000 One Is A 4 16 Year Bond Priced To Yield 10 0 The Other Is A N 7 5 23 Year Bo 1 (29.25 KiB) Viewed 11 times
Two bonds have par values of $1,000. One is a 4%, 16-year bond priced to yield 10.0%. The other is a(n) 7.5%, 23-year bond priced to yield 5.5%. Which of these two has the lower price? (Assume annual compounding in both cases.) The price, PV, of the 4%, 16-year bond is $ The price, PV, of the 7.5%, 23-year bond is $ (Round to the nearest cent.) Which of these two has the lower price? (Select the best answer below.) (Round to the nearest cent.) O The 4%, 16-year bond has lower price of $530.58. The 7.5%, 23-year bond has lower price of $530.58.