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Q2) Both Bond S and Bond T are 4 percent coupon bonds, make semi-annual payments. They have a yield-to-maturity of 7 percent. While Bond S

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Q2) Both Bond S and Bond T are 4 percent coupon bonds, make semi-annual payments. They have a yield-to-maturity of 7 percent. While Bond S has 5 years to maturity, Bond T has 10 years to maturity a) If interest rates suddenly rise by 2 percent, What will the percentage change in the price of Bond S and Bond T (10 pts) Q2) Both Bond S and Bond T are 4 percent coupon bonds, make semi-annual payments. They have a yield-to-maturity of 7 percent. While Bond S has 5 years to maturity, Bond T has 10 years to maturity a) If interest rates suddenly rise by 2 percent, What will the percentage change in the price of Bond S and Bond T (10 pts)

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