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azureclam105Lv1
28 Nov 2020
Bond J has a coupon rate of 3 percent. Bond K has a coupon rate of 9 percent. Both bonds have 14 years to maturity, make semiannual payments, and have a YTM of 6 percent. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?
1. Percentage change in price of Bond J? ______%
2. Percentage change in price of Bond K?______%
What if rates suddenly fall by 2 percent instead?
3. Percentage change in price of Bond J? _______%
4. Percentage change in price of Bond K? _______%
Bond J has a coupon rate of 3 percent. Bond K has a coupon rate of 9 percent. Both bonds have 14 years to maturity, make semiannual payments, and have a YTM of 6 percent. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?
1. Percentage change in price of Bond J? ______%
2. Percentage change in price of Bond K?______%
What if rates suddenly fall by 2 percent instead?
3. Percentage change in price of Bond J? _______%
4. Percentage change in price of Bond K? _______%
Ronaldo MendozaLv10
23 Jan 2021