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23 Calculation & Output 24 Question 10 If interest rates suddenly rise by 3 percent (percentage points), what is the percentage 25 change in the

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23 Calculation & Output 24 Question 10 If interest rates suddenly rise by 3 percent (percentage points), what is the percentage 25 change in the price of the two bonds? 26 27 Increase in interest rate 28 New YTM 29 New Price of Bond X 30 New Price of Bond Y 31 % change in Bond X 32 % change in Bond Y 33 34 Question 11 If rates were to suddenly fall by 3 percent (percentage points) instead, what would be 35 the percentage change in the price of the two bonds? 36 37 Fall in interest rate 38 New YTM 39 New Price of Bond X 40 New Price of Bond Y 41 % change in Bond X 42 % change in Bond Y 43

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