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Interest rate risk and bond price changes. Fidelify Music inc. has an older high yeid...

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Accounting

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Interest rate risk and bond price changes. Fidelify Music inc. has an older high yeid bond (6e, junk bond) issue and a more rocent invesiment grade bond issue. Fidel(y's high ylold 12% coupon the bond price sensitivity to undertyeng intereat rale fluctuations for bosh Fideliy Music bond issues. 2. What is the current prict of both bonds? b. What wal be the percentage change in bond pnce for both bonds if the underlying interest rases increaso by 2% ? Which bond has more price sensitvity to interest rate risk? d. What conclusions do you draw from comporing your answers is parts b and c ? a. The current price of the high yeid bond is : (Pround to the nearest cant)

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