Question
In: Finance
Bond J has a coupon of 7.8 percent. Bond K has a coupon of 11.8 percent....
Bond J has a coupon of 7.8 percent. Bond K has a coupon of 11.8 percent. Both bonds have 12 years to maturity and have a YTM of 8.7 percent.
a. If interest rates suddenly rise by 2.4 percent, what is the percentage price change of these bonds? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
bond j:
bond k:
b. If interest rates suddenly fall by 2.4 percent, what is the percentage price change of these bonds? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
bond j:
bond k:
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Bond J has a coupon of 4.2 percent. Bond K has a coupon of 8.2 percent....
Bond J has a coupon of 4.2 percent. Bond K has a coupon of 8.2
percent. Both bonds have 10 years to maturity and have a YTM of 6
percent.
a. If interest rates suddenly rise by 1
percent, what is the percentage price change of these bonds?
Bond J:
Bond K:
b. If interest rates suddenly fall by 1
percent, what is the percentage price change of these bonds?
Bond J:
Bond K:
Bond J has a coupon of 7.2 percent. Bond K has a coupon of 11.2 percent....
Bond J has a coupon of 7.2 percent. Bond K has a coupon of 11.2
percent. Both bonds have 12 years to maturity and have a YTM of 8.4
percent.
a. If interest rates suddenly rise by 1.8 percent,
what is the percentage price change of these bonds? (A
negative value should be indicated by a minus sign. Do not round
intermediate calculations. Enter your answers as a percent rounded
to 2 decimal places.)
%Δ in Price
Bond J: %...
Bond J has a coupon of 7.2 percent. Bond K has a coupon of 11.2 percent....
Bond J has a coupon of 7.2 percent. Bond K has a coupon of 11.2
percent. Both bonds have 12 years to maturity and have a YTM of 8.4
percent.
a. If interest rates suddenly rise by 1.8
percent, what is the percentage price change of these bonds?
(A negative value should be indicated by a minus sign. Do
not round intermediate calculations. Enter your answers as a
percent rounded to 2 decimal places.)
%Δ in Price
Bond J: %...
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 14 percent. Both bonds have 17 years to maturity, a par value of $1,000, and a YTM of 8 percent, and both make semiannual payments. a. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as...
Bond J has a coupon rate of 3 percent. Bond K has a coupon rate of...
Bond J has a coupon rate of 3 percent. Bond K has a coupon rate of 9 percent. Both bonds have 14 years to maturity, make semiannual payments, and have a YTM of 6 percent. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?
1.Percentage change in price of Bond _______ J%
2.Percentage change in price of Bond_______ K%
What if rates suddenly fall by 2 percent instead?
3.Percentage change in price...
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 9 percent. Both bonds have 9 years to maturity, make semiannual
payments, and have a YTM of 7 percent.
If interest rates suddenly rise by 4 percent, what is the
percentage price change of Bond J? -23.65% -21.67% -22.67%
-23.67%
If interest rates suddenly rise by 4 percent, what is the
percentage price change of Bond K? 31.98% -21.57% -19.59%
-21.59%
If interest rates...
Bond J has a coupon rate of 5.5 percent. Bond K has a coupon rate of...
Bond J has a coupon rate of 5.5 percent. Bond K has a coupon
rate of 15.5 percent. Both bonds have eight years to maturity, a
par value of $1,000, and a YTM of 12 percent, and both make
semiannual payments.
a. If interest rates suddenly rise by 3 percent, what is the
percentage change in the price of these bonds? (A negative answer
should be indicated by a minus sign. Do not round intermediate
calculations and enter your answers...
Bond J has a coupon rate of 3 percent. Bond K has a coupon rate of...
Bond J has a coupon rate of 3 percent. Bond K has a coupon rate
of 9 percent. Both bonds have 14 years to maturity, make semiannual
payments, and have a YTM of 6 percent.
If interest rates suddenly rise by 2 percent, what is the
percentage price change of these bonds? (A negative answer
should be indicated by a minus sign. Do not round intermediate
calculations and enter your answers as a percent rounded to 2
decimal places, e.g.,...
Bond J has a coupon rate of 6 percent. Bond K has a coupon rate of...
Bond J has a coupon rate of 6 percent. Bond K has a coupon rate
of 10 percent. Both bonds have 10 years to maturity, make
semiannual payments, and have a YTM of 7 percent.
If interest rates suddenly rise by 3 percent, what is the
percentage price change of Bond J?
-19.16%
-19.18%
-17.18%
-18.18%
If interest rates suddenly rise by 3 percent, what is the
percentage price change of Bond K?
32.91%
-17.57%
-15.57%
-17.55%
...
Bond J has a coupon rate of 3 percent and Bond K has a coupon rate...
Bond J has a coupon rate of 3 percent and Bond K has a coupon
rate of 9 percent. Both bonds have 16 years to maturity, make
semiannual payments, and have a YTM of 6 percent.
a. If interest rates suddenly rise by 2 percent, what is the
percentage price change of these bonds?
b. What if rates suddenly fall by 2 percent instead?
a. Bond J- _____%
Bond K - ______%
b. Bond J- _____%
Bond K- ______%
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