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The Falcon Corp. has a 6 percent coupon bond outstanding. The Sonata Company has a 14 percent bond outstanding. Both bonds have 12 years to
The Falcon Corp. has a 6 percent coupon bond outstanding. The Sonata Company has a 14 percent bond outstanding. Both bonds have 12 years to maturity, make semi-annual payments, and have a YTM of 10 percent 1- Calculate the price of each bond 2- If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? 3- Show by calculations, which one has higher interest rate risk
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