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Section I1. Three short problems (this section is worth this section. Solve the exercises space belo points) -Do not use the answer sheet for ses
Section I1. Three short problems (this section is worth this section. Solve the exercises space belo points) -Do not use the answer sheet for ses in the space below each problem. Allrelevant work must be shown Pro ) em: Jackson County (Mississippi) has a 6-year, 8% annual coupon bond Earls County( 106% Mississippi) has a 12-year, 8% annual coupon bond Both bonds currently have a yield to maturity of and a face value of $1000. A.Calculat the dollar price change (at t 796 [ 10 points] 0) for the Jackson County bond if the yield increases from 6% to B.Calculatetthe dollar price change (at t 0) for the Earls County bond if the yield increases from 6% to 7% [ 10 points] C. Which bond experiences a higher percentage price change? Justify your answer! 110 points)
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