Bond J has a coupon% of 4.7. Bond S has a coupon% of 14.7. Both
have ten yrs to maturity, make semiannual
payments, and have a YTM%=10.4. Face value=$1,000.
Requirement 1:
If rates rise 3 percent, what is the percentage change in the
price of these bonds? Hint: this is similar to the previous
problem, except that here you must solve for the old price first
(in the previous problem it was given as $1,000).
(Do not round intermediate
calculations....