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The Faulk Corp. has a bond with a coupon rate of 4 percent outstanding. The Yoo Company has a bond with a coupon rate of

The Faulk Corp. has a bond with a coupon rate of 4 percent outstanding. The Yoo Company has a bond with a coupon rate of 10 percent outstanding. Both bonds have 12 years to maturity, make semiannual payments, and have a YTM of 7 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?

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