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Both b and A and bond B have 7.4 percent coupons and are priced at par value. Bond A has 7 years to maturity, while
Both b and A and bond B have 7.4 percent coupons and are priced at par value. Bond A has 7 years to maturity, while bond B has 16 years to maturity. If interest rates suddenly rise by 1.8 percent, what is the percentage change in price of bond A and bond B? (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Bond A % Bond B % If interest rates suddenly fall by 1.8 percent instead, what would be the percentage change in price of bond A and bond B? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Bond A % Bond B %
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