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Laurel inc and Hardy corp both have 10 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Laurel
Laurel inc and Hardy corp both have 10 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Laurel Inc. bond has five years to maturity, whereas the Hardy Corp. bond has 16 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? If the interest rates fall by 2 percent?
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