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the faulk corp. has a 7 percent coupon bond outstanding. the yoo company has an 11 percent bond outstanding. both bonds have 12 years to
the faulk corp. has a 7 percent coupon bond outstanding. the yoo company has an 11 percent bond outstanding. both bonds have 12 years to maturity, make semiannual payments and have a ytm of 9 percent. if interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? what if interest rates suddenly fall by 2 percent instead? what does this problem tell you about the interest rate risk of lower coupon rates
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