Problem:
The Witmoer Co. is currently issuing both 10-year and 20-year bonds at par. The bonds each pay 8 percent annual interest and have face values of $1,000. You decide to purchase one of each of these bonds. Assume that the yield to maturity on each of these bonds is 7.6 percent one year from now. Given this you will realize ________ percent price appreciation on the 10-year bond and _______ percent price appreciation.
Note: Provide support for your rationale.