In: Finance
Both Bond A and Bond B have 7 percent coupons and are priced at par value. Bond A has 7 years to maturity, while Bond B has 18 years to maturity. If interest rates suddenly rise by 2 percentage points, what is the difference in percentage changes in prices of Bond A and Bond B? (i.e., Bond A - Bond B). The bonds pay coupons twice a year.
(A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)