The percentage change in the price of bills bills bonds

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Both Bond Bill and Bond Ted have 11.2 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 4 years to maturity, whereas Bond Ted has 21 years to maturity. Both bonds have a par value of 1,000.

If rates were to suddenly fall by 3 percent instead, what would be the percentage change in the price of bills bills bonds?

Reference no: EM132002959

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