Bond J is a 4.2 percent coupon bond. Bond K is a 8.2 percent coupon...
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Bond J is a 4.2 percent coupon bond. Bond K is a 8.2 percent coupon bond. Both bonds have 10 years to maturity and have a YTM of 6 percent.
| a. | Assume if interest rates suddenly rise by 1 percent, what is the percentage price change of these bonds? (Negative amounts should be indicated by a minus sign. Round your answer to 2 decimal places. Omit the "%" sign in your response.) |
| Bond J | % |
| Bond K | % |
| b. | Assume if interest rates suddenly fall by 1 percent, what is the percentage price change of these bonds? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) |
| Bond J | % |
| Bond K | % |
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