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please parts a through c work be shown 2. Bond A is a 4% coupon bond. Bond B is a 10% coupon bond. Both bonds
please parts a through c work be shown
2. Bond A is a 4% coupon bond. Bond B is a 10% coupon bond. Both bonds have 12 years to maturity, make semiannual payments, and have a YTM of 9%. a) if Interest rates suddenly rise by 2%, what is the percentage price change of these bonds? b) Ifrates suddenly fall by 2% instead what is the percentage price change of these bonds? c) What does this problem tell you about the interest rate risk of lower-coupon bonds Step by Step Solution
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