Calculate the new prices of bonds

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The Fix Corporation has two bonds outstanding, both of which have a 9% coupon rate (with annual coupons) and sell for their $100 par value. The first bond, bond A, has four years to maturity. The second bond, bond B has eight years to maturity. If market interest rates were to rise by 2%, which bond would have the larger price change? Calculate the new prices of both bonds to illustrate your answer.

Reference no: EM133068081

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