Question
Laurel, Inc., and Hardy Corp. both have 9 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Laurel,
Laurel, Inc., and Hardy Corp. both have 9 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Laurel, Inc., bond has 4 years to maturity, whereas the Hardy Corp. bond has 15 years to maturity. If interest rates suddenly rise by 4 percent, the percentage change in the price of Bonds Laurel, Inc., and Hardy Corp. is percent and percent, respectively. (Negative amounts should be indicated by a minus sign. Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16))
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