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Both bond A and bond B have 9.8 percent coupons and are priced at par value. Bond A has 9 years to maturity, while bond
Both bond A and bond B have 9.8 percent coupons and are priced at par value. Bond A has 9 years to maturity, while bond B has 20 years to maturity. a) Assume if interest rates suddenly rise by 2.4 percent, what is the percentage change in price of bond A and bond B? b) Assume if interest rates suddenly fall by 2.4 percent instead, what would the percentage change in price of bond A and bond B
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