Question
Bond J is a 3 percent coupon bond. Bond K is a 12 percent coupon bond. Both bonds have 9 years to maturity, make semiannual
Bond J is a 3 percent coupon bond. Bond K is a 12 percent coupon bond. Both bonds have 9 years to maturity, make semiannual payments, and have a YTM of 8 percent. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? What if rates suddenly fall by 2 percent instead?
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Understanding Financial Risk Management
Authors: Angelo Corelli
1st Edition
0415746183, 978-0415746182
