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Bond J has a coupon rate of 4 percent. Bond K has a coupon rate of...

Bond J has a coupon rate of 4 percent. Bond K has a coupon rate of 10 percent. Both bonds have 7 years to maturity, make semiannual payments, and have a YTM of 7 percent.

  

If interest rates suddenly rise by 5 percent, what is the percentage price change of Bond J?

  

If interest rates suddenly rise by 5 percent, what is the percentage price change of Bond K?

  

If interest rates suddenly fall by 5 percent, what is the percentage price change of Bond J?

  

If interest rates suddenly fall by 5 percent, what is the percentage price change of Bond K?

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jeff jeffy answered 3 months ago
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