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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 11 percent. Both bonds have 8 years to maturity, make semiannual payments, and have a YTM of 6 percent.

  

If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond J?
  • -22.82%
  • -21.82%
  • -20.82%
  • -22.80%
  • 31.22%

  

If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond K?
  • -19.77%
  • -17.77%
  • 39.84%
  • -19.75%
  • 26.52%

  

If interest rates suddenly fall by 4 percent, what is the percentage price change of Bond J?
  • 31.20%
  • -22.84%
  • 31.18%
  • -32.51%

  

If interest rates suddenly fall by 4 percent, what is the percentage price change of Bond K?
  • 26.50%
  • -19.79%
  • 26.38%
  • 6.42%
  • -66.23%

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jeff jeffy answered 1 year ago
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