bonds
Two bonds have par values of ;$1,000. One is a 5%, 14-year bond priced to yield 8.5%. The other is ;a(n) 9%, 21-year bond priced to yield 6.5%. Which of these two has the lower ;price? (Assume annual compounding in both ;cases.)
The ;price, PV, of the 5%, 14-year bond is $. (Round to the nearest ;cent.)
The ;price, PV, of the 9%, 21-year bond is $. (Round to the nearest ;cent.)
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Which of these two has the lower ;price? (Select the best answer ;below.)
The 5%, 14-year bond has lower price of $719.65
The 9%, 21-year bond has lower price of $719.65
