percentage price change
SuperClassBond J is a 8 percent coupon bond. Bond K is a 12 percent coupon bond. Both bonds have 12 years to maturity and have a YTM of 9.5 percent.
a. | If interest rates suddenly rise by 1 percent, what is the percentage price change of these bonds? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) |
Bond J | % |
Bond K | % |
b. | If interest rates suddenly fall by 1 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. Omit the "%" sign in your response.) |
Bond J | % |
Bond K | % |
10 years ago
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percentage_price_change.docx
