Question
Both bond A and bond B have 10 percent coupons and are priced at par value. Bond A has 10 years to maturity, while bond
Both bond A and bond B have 10 percent coupons and are priced at par value. Bond A has 10 years to maturity, while bond B has 20 years to maturity. If interest rates suddenly rise by 1 percent, what is the percentage change in price of bond A and bond B? If interest rates suddenly fall by 1 percent instead, what would be the percentage change in price of bond A and bond B?
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International Finance A Survey
Authors: H. Kent Baker, Leigh A. Riddick
1st Edition
0199754659, 978-0199754656
