Bond J is a 4 percent coupon bond. Bond K is a 10 percent coupon...
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Accounting
| Bond J is a 4 percent coupon bond. Bond K is a 10 percent coupon bond. Both bonds have 18 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 price change of these bonds?
What if rates suddenly fall by 2 percent instead?
Ignore the 3.15 % | ||||||||||||
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