Which bond price will change more

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Question: Please explain in detail how you reached the answer and show mathematical calculations (and not just the results).

You are interested in two bonds. Coupons are paid annually. Which bond's price will change more (in percentage terms) as interest rates fall? Why?

Bond

Matures
in

Coupon
Rate

Current
Price

Smith Inc.

5 years

8%

$1000.00

Vortex

10 years

5%

$798.70

Reference no: EM132042582

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