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solve ty Both Bond A and Bond B have 6.2 percent coupons and are priced at par value. Bond A has 6 years to maturity,
solve ty
Both Bond A and Bond B have 6.2 percent coupons and are priced at par value. Bond A has 6 years to maturity, while Bond B has 15 years to maturity. a. If interest rates suddenly rise by 1 percent, what is the percentage change in price of Bond A and Bond B ? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal ploces.) A Answer is complete but not entirely correct. b. If interest rates suddenly fall by 1 percent instead, what would be the percentage change in price of Bond A and Bond B? (Do round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct Step by Step Solution
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