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Both Bond X and Bond Y have 7 , 5 % coupon rate, make semiannual payments, and are priced at par value. Bond X has
Both Bond X and Bond Y have coupon rate, make semiannual payments, and are priced at par value. Bond X has years to maturity while Bond Y has years to maturity. If interest rates suddenly rise by percents, what is the percentage change in the price of those bonds? On contrary, if interest rates fall by percents instead, what would happen to both bonds prices?
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