Question
Bond J has a coupon rate of 4 percent and Bond K has a coupon rate of 10 percent. Both bonds have 12 years to
Bond J has a coupon rate of 4 percent and Bond K has a coupon rate of 10 percent. 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 price change of these bonds? Percentage change of J & K?
Percentage change in J & K, if rates suddenly fall by 2%?
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
3rd Edition
007337590X, 9780073375908
