Question
Bond J has a coupon rate of 6 percent. Bond K has a coupon rate of 11 percent. Both bonds have 8 years to maturity,
Bond J has a coupon rate of 6 percent. Bond K has a coupon rate of 11 percent. Both bonds have 8 years to maturity, make semiannual payments, and have a YTM of 9 percent.
If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond J?
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Affordable Housing Finance
Authors: K. Hawtrey
2009th Edition
0230555187, 978-0230555181
