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The Faulk Corp. has a bond with a coupon rate of 4 percent outstanding. The Gonas Company has a bond with a coupon rate of
The Faulk Corp. has a bond with a coupon rate of percent outstanding. The Gonas Company has a bond with a coupon rate of percent outstanding. Both bonds have years to maturity, make semiannual payments, and have a YTM of percent.
a If interest rates suddenly rise by percent, what is the percentage change in the price of these bonds?A negative answer should be indicated by a minus sign.Do not round intermediate calculations and enter your answers as a percentrounded to decimal places, eg
b What if rates suddenly fall by percent instead?Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
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