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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 of Bond _______ J%

4.Percentage change in price of Bond _______ K%

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jeff jeffy answered 2 years ago
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