Question
Bond J has a coupon rate of 3 percent and Bond K has a coupon rate of 9 percent. Both bonds have 13 years to
| Bond J has a coupon rate of 3 percent and Bond K has a coupon rate of 9 percent. Both bonds have 13 years to maturity, make semiannual payments, and have a YTM of 6 percent. |
| If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? Bond J: % Bond K: % What if rates suddenly fall by 2 percent instead? Bond J: % Bond K: %
|
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International Corporate Finance
Authors: Mark R. Eaker, Frank J. Fabozzi, Dwight Grant
1st Edition
0030693063, 9780030693069
