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Bond J has a coupon rate of 5 percent. Bond K has a coupon rate of...

Bond J has a coupon rate of 5 percent. Bond K has a coupon rate of 10 percent. Both bonds have 9 years to maturity, make semiannual payments, and have a YTM of 6 percent.

A. If interest rates suddenly rise by 3 percent, what is the percentage price change of Bond J?

B.   If interest rates suddenly rise by 3 percent, what is the percentage price change of Bond K?

C. If interest rates suddenly fall by 3 percent, what is the percentage price change of Bond J?
D. If interest rates suddenly fall by 3 percent, what is the percentage price change of Bond K?

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jeff jeffy answered 3 years ago
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