consider two bonds each has a face value of 100, Macroeconomics

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consider two bonds each has a face value of 100

Consider two bonds. Each has a face value of $100 and matures in one year. One has a zero coupon payment, and the other pays $10 per year.

A. Explain how the two bonds differ

B. Calculate the price of each bond if the interest rate is 3%

C. Which bond has a higher price? And why

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Macroeconomics: consider two bonds each has a face value of 100

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Macroeconomics: consider two bonds each has a face value of 100

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