Bond J is a 3.3% coupon bond. Bond K is a 9.3% coupon bond. Both bonds...

Bond J is a 3.3% coupon bond. Bond K is a 9.3% coupon bond. Both bonds have 15 years to maturity, make semiannual payments and have a YTM of 6.3%. (Do not round intermediate calculations. Negative answers should be indicated by a minus sign. Round the final answers to 2 decimal places.)

If interest rates suddenly rise by 2%, what is the percentage price change of these bonds?


Percentage change in price of Bond J	%-
Percentage change in price of Bond K	%-

What if rates suddenly fall by 2% instead?


Percentage change in price of Bond J	% -
Percentage change in price of Bond K	% -

Expert Solution

jeff jeffy answered 2 years ago

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