Compute the percentage change in the price of the bonds

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Bond-A: $ 1000 Face value, 5 year term, 5% coupon. Bond-B: $ 1000 Face value, 20 year term, 5% coupon. a. Price the bonds if your required rate of return is 5%. b. Price the bonds if your required rate of return is 7%. c. Price the bonds if your required rate of return is 3%. d. Compute the percentage change in the price of the bonds with answers from (a) and (b). e. Compute the percentage change in the price of the bonds with answers from (a) and (c). f. Is there a story to tell?

Reference no: EM131023304

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