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Bond J has a coupon of 5.2 percent. Bond K has a coupon of 9.2 percent. Both bonds have 15 years to maturity and have
Bond J has a coupon of 5.2 percent. Bond K has a coupon of 9.2 percent. Both bonds have 15 years to maturity and have a YTM of 7.4 percent a. If interest rates suddenly rise by 1.6 percent, what is the percentage price change of these bonds? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. %A in Price Bond (13.78) % Bond (12.39) K J b. If interest rates suddenly fall by 1.6 percent, what is the percentage price change of these bonds? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) X Answer is complete but not entirely correct. %A in Price 16.95% Bond J Bond K 15.06 %
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