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Bond J is a 5.9 percent coupon bond. Bond S is a 15.9 percent coupon bond. Both bonds have twelve years to maturity, make semiannual
Bond J is a 5.9 percent coupon bond. Bond S is a 15.9 percent coupon bond. Both bonds have twelve years to maturity, make semiannual payments, and have a YTM of 12.8 percent. Requirement 1: If interest rates suddenly rise by 3 percent, what is the percentage change in the price of these bonds? (Do not include the percent signs (%). Enter rounded answers as directed, but do not use the rounded numbers in intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places (e.g., 32.16).) Percentage change in price Bond J % Bond S % Requirement 2: If interest rates suddenly fall by 3 percent instead, what is the percentage change in the price of these bonds? (Do not include the percent signs (%). Enter rounded answers as directed, but do not use the rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Percentage change in price Bond J % Bond S %
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