Question
Bond J is a 3 percent coupon bond. Bond K is a 9 percent coupon bond. Both bonds have 15 years to maturity, make semiannual
| Bond J is a 3 percent coupon bond. Bond K is a 9 percent coupon bond. Both bonds have 15 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? (Negative amounts should be indicated by a minus sign.Round your answers to 2 decimal places. (e.g., 32.16)) |
| Percentage change in price of Bond J | % |
| Percentage change in price of Bond K | % |
| | |
| What if rates suddenly fall by 2 percent instead? (Round your answers to 2 decimal places. (e.g., 32.16)) |
| Percentage change in price of Bond J | % |
| Percentage change in price of Bond K | % |
| | |
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International Financial Reporting Standards An Introduction
Authors: Belverd Needles, Marian Powers
2nd edition
053847680X, 978-1111793234, 1111793239, 978-0538476805
