Question
Bond J is a 4.1% coupon bond. Bond K is a 10.1% coupon bond. Both bonds have 15 years to maturity, make semiannual payments and
Bond J is a 4.1% coupon bond. Bond K is a 10.1% coupon bond. Both bonds have 15 years to maturity, make semiannual payments and have a YTM of 7.1%. (Do not round intermediate calculations. Negative answers should be indicated by a minus sign. Round the final answers to 2 decimal places.)
If interest rates suddenly rise by 2%, what is the percentage price change of these bonds?
| Percentage change in price of Bond J | % |
| Percentage change in price of Bond K | % |
What if rates suddenly fall by 2% instead?
| Percentage change in price of Bond J | % |
| Percentage change in price of Bond K |
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Robonomics Prepare Today For The Jobless Economy Of Tomorrow
Authors: John Crews
1st Edition
1530910463, 978-1530910465
