Question
Both bond A and bond B have 8.4 percent coupons and are priced at par value. Bond A has 7 years to maturity, while bond
Both bond A and bond B have 8.4 percent coupons and are priced at par value. Bond A has 7 years to maturity, while bond B has 18 years to maturity if interest rates suddnly rise & fall by 1.2 percent, what is the percentage change in price of bond A and bond B?
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Managerial Finance
Authors: Alan Parkinson
1st Edition
0750618264, 978-0750618267
