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For Part A. Bond A I got 5.97% and it says it is wrong. I am not sure if my rounding is the reason why
For Part A. Bond A I got 5.97% and it says it is wrong. I am not sure if my rounding is the reason why or not.
For Part B Bond A I am getting different answers almost each time.
Can someone please double check both parts.
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 1.6 percent, what is the percentage change in price of Bond A and Bond B? (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.) %A in Price Bond A Bond B % (13.08) % b. If interest rates suddenly fall by 1.6 percent instead, what would be the percentage change in price of Bond A and Bond B? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) %A in Price : % Bond A Bond B 16.44% 1:39 PM 6/21/2020 GO O searchStep by Step Solution
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