Question
A Bond of JJ Sons is a 4 percent coupon bond, while a bond of KK Sons is a 12 percent coupon bond, both with
A Bond of JJ Sons is a 4 percent coupon bond, while a bond of KK Sons is a 12 percent coupon bond, both with par value of $1,000. Both bonds have nine years to maturity and make annual payments, they both have a YTM of 8 percent. If interest rates suddenly rise by 2 percent, what will be the change in price of these bonds?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
