In: Finance
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?
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