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Both Bond A and Bond B have 9 percent coupons and are priced at par value. Bond A has 5 years to maturity, while Bond
Both Bond A and Bond B have 9 percent coupons and are priced at par value. Bond A has 5 years to maturity, while Bond B has 20 years to maturity. a. If interest rates suddenly rise by 16 percent. What is the percentige change in price of Bond A and Bond B? (A negatlve value should be indicated by a minus sign. Do not round intermediate caleulations. Enter your answers as a percent rounded to 2 decimol ploces.) b. If interest rates suddenly fall by 1.6 percent instesd, what would be the percentage change in price of Bond A and Bond B ? (Da not round intermediote colculbtions. Enter your answers as a percent rounded to 2 deelthal places.) Bond J has a coupon of 5.4 percent. Bond K has a coupon of 9.4 percent. Both bonds have 15 years to maturity and have a YTM of 6.4 percent. a. If interest rates suddenly rise by 1.8 percent, what is the percentage price change of these bonds? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) b. If interest rates suddenly fall by 1.8 percent, what is the percentage price change of these bonds? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
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