What is the new price of all bonds

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Patriots, Inc. just issued a 20-year corporate bond with a yield-to-maturity of7.5% per year.

c) Rams, Inc. just issued at par a corporate bond in this same economic environment. However, since Rams' credit risk is lower, they were able to offer bonds with a 4.5% annual coupon, paid semi-annually, and a 20 year maturity, at par. If interest rates decline, so that the yield-to-maturity of all three of the bonds above decline by 0.75% per year, what is the new price of all three bonds?

Reference no: EM133121524

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