Both Bond Bill and Bond Ted have 11 percent coupons, makesemiannual payments, and are priced at par value. Bond Bill has 3years to maturity, whereas Bond Ted has 20 years to maturity. Bothbonds have a par value of 1,000. If interest rates suddenly rise by2 percent, what is the percentage change in the price of thesebonds? (A negative answer should be indicated by a minus sign. Donot round intermediate calculations and enter your answers as apercent rounded to 2 decimal places, e.g., 32.16.)
Percentage change in price
Bond Bill %
Bond Ted %
If rates were to suddenly fall by 2 percent instead, what wouldbe the percentage change in the price of these bonds? (Do not roundintermediate calculations and enter your answers as a percentrounded to 2 decimal places, e.g., 32.16.)
Percentage change in price
Bond Bill %
Bond Ted %
Both Bond Bill and Bond Ted have 11 percent coupons, makesemiannual payments, and are priced at par value. Bond Bill has 3years to maturity, whereas Bond Ted has 20 years to maturity. Bothbonds have a par value of 1,000. If interest rates suddenly rise by2 percent, what is the percentage change in the price of thesebonds? (A negative answer should be indicated by a minus sign. Donot round intermediate calculations and enter your answers as apercent rounded to 2 decimal places, e.g., 32.16.)
Percentage change in price
Bond Bill %
Bond Ted %
If rates were to suddenly fall by 2 percent instead, what wouldbe the percentage change in the price of these bonds? (Do not roundintermediate calculations and enter your answers as a percentrounded to 2 decimal places, e.g., 32.16.)
Percentage change in price
Bond Bill %
Bond Ted %
Related questions
Both Bond Bill and Bond Ted have 11.8 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 7 years to maturity, whereas Bond Ted has 24 years to maturity.
| Requirement 1: |
| If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places (e.g., 32.16).)
|
Both Bond Bill and Bond Ted have 12 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 3 years to maturity, whereas Bond Ted has 20 years to maturity.
Requirement 1:
| If interest rates suddenly rise by 3 percent, what is the percentage change in the price of these bonds? (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places (e.g., 32.16).) |
| Percentage change in price | |
| Bond Bill | % |
| Bond Ted | % |
| Requirement 2: |
| If rates were to suddenly fall by 3 percent instead, what would be the percentage change in the price of these bonds? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) |
| Percentage change in price | |
| Bond Bill | % |
| Bond Ted | % |
