Bond J has a coupon of 4 percent. Bond K has a coupon of 8 percent....
Bond J has a coupon of 4 percent. Bond K has a coupon of 8 percent. Both bonds have 10 years to maturity and have a YTM of 7 percent.
a. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? (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 places.)
b. If interest rates suddenly fall by 2 percent, what is the percentage price change of these bonds? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Semi annual coupon
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Bond J has a coupon of 4 percent. Bond K has a coupon of 8
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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 10 percent outstanding. Both bonds have 17 years to maturity, make semiannual payments, and have a YTM of 7 percent. 10 points If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (A negative answer should be indicated by...
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assume face value of 1000 for bond
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 17 years to maturity, make semiannual payments, and have a YTM of 7 percent. 10 points If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (A negative answer should be indicated by...
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