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 44 Question 12 45 Create a GRAPH showing bond prices against YTM from 0% to 10% for the two bonds. 46 47 YTM Price of Bond X Price of Bond Y 48 0% 49 1% 2% 3% + 4% 5% 6% 7% 56 8% 57 9% 58 10% 59