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If anyone could please help me, I really need help with this question! This assignment is due at 11:59pm tonight and I ran out of
If anyone could please help me, I really need help with this question! This assignment is due at 11:59pm tonight and I ran out of check answer options and I cannot figure this problem out! I was able to solve for Bond K when the interest rates suddenly fall by 2% but other than that I am stumped.
Check my work Bond J has a coupon of 4 percent. Bond K has a coupon of 8 percent. Both bonds have 10 years to maturity and have a YTM of 7 percent. a. If interest rates suddenly rise by 2 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.) Bond J %A in Price 8.51 % (8.77) % Bond K b. If interest rates suddenly fall by 2 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.) Bond J %A in Price 16.70% 15.08 % Bond KStep by Step Solution
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