Question
Bond X is a 5% coupon bond, Bond Y is a 8% coupon bond. The market interest rate is 9% and both bonds have a
Bond X is a 5% coupon bond, Bond Y is a 8% coupon bond. The market interest rate is 9% and both bonds have a maturity of 12 years. If the interest rate drops by 3%, what will be the price change for both bonds?
| a. | Bond X= -28,93%, Bond Y= -25,12% | |
| b. | Bond X =77,89% , Bond Y = 79,51% | |
| c. | Bond X= 25,77%, Bond Y= 28,90% | |
| d. | Bond X= 28,39%, Bond Y= 25,77% |
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Faith And Finance
Authors: Jim Palmer
1st Edition
0979635624, 9780979635625
