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Q4 Bond L is a 4 percent coupon bond. Bond H is a 8 percent coupon bond. Both bonds have ten years to maturity, a
Q4 Bond L is a 4 percent coupon bond. Bond H is a 8 percent coupon bond. Both bonds have ten years to maturity, a par value of $100, make semiannual payments and have a YTM of 6 percent. a) If interest rates suddenly rise by 1 percent, what is the percentage price change of these bonds? b) What if rates suddenly fall by 1 percent instead
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