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Please show with calculations on a financial calculator, thanks! 7 The Faulk Corp. has a bond with a coupon rate of 4 percent outstanding. The
Please show with calculations on a financial calculator, thanks!
7 The Faulk Corp. has a bond with a coupon rate of 4 percent outstanding. The Gonas Company has a bond with a coupon rate of 10 percent outstanding. Both bonds have 17 years to maturity, make semiannual payments, and have a YTM of 7 percent. 9.09 points If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Skipped Percentage change in price of Faulk Corp. bond Percentage change in price of Gonas co. bond eBook What if rates suddenly fall by 2 percent instead? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Hint Percentage change in price of Faulk Corp. bond Percentage change in price of Gonas Co. bond Print r ReferencesStep by Step Solution
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