Bond J has a coupon of 6.8 percent. Bond K has a coupon of 10.8 percent. Both bonds have 20 years to maturity and have a YTM of 7.1 percent. If interest rates suddenly rise by 1.4 percent, what is the percentage price change of these bonds? Note: 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. If interest rates suddenly fall by 1.4 percent, what is the percentage price change of these bonds? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
Bond J has a coupon of 6.8 percent. Bond K has a coupon of 10.8 percent. Both bonds have 20 years to maturity and have a YTM of 7.1 percent. If interest rates suddenly rise by 1.4 percent, what is the percentage price change of these bonds? Note: 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. If interest rates suddenly fall by 1.4 percent, what is the percentage price change of these bonds? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 11P
Related questions
Question
Bond J has a coupon of 6.8 percent. Bond K has a coupon of 10.8 percent. Both bonds have 20 years to maturity and have a YTM of 7.1 percent.
-
If interest rates suddenly rise by 1.4 percent, what is the percentage price change of these bonds?
Note: 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.
-
If interest rates suddenly fall by 1.4 percent, what is the percentage price change of these bonds?
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
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