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4 The Faulk Corp. has a 4 percent coupon bond outstanding. The Gonas Company has a 10 percent bond outstanding. Both bonds have 12 years

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4 The Faulk Corp. has a 4 percent coupon bond outstanding. The Gonas Company has a 10 percent bond outstanding. Both bonds have 12 years to maturity, make semiannual payments, and have a YTM of 7 percent. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Percentage change in price of Faulk Percentage change in price of Gonas % % What if Interest rates suddenly fall by 2 percent instead? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Percentage change in price of Faulk Percentage change in price of Gonas % %

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