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A :Bond J has a coupon rate of 3 percent. Bond K has a coupon rate of 9 percent. Both bonds have 14 years to
| A :Bond J has a coupon rate of 3 percent. Bond K has a coupon rate of 9 percent. Both bonds have 14 years to maturity, make semiannual payments, and have a YTM of 6 percent. |
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| lIf interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? Find : Percentage change in price of bond J: Percentage change in price of bond K: B,, What if the rate suddenly fally by 2 percent ? Find : Percentage change in price of bond J: Percentage change in price of bond K: |
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