Bond J is a 5.8 percent coupon bond. Bond K is a 9.8 percent coupon bond. Both bonds have 15 years to maturity and have a YTM of 7.6 percent.
a. If interest rates suddenly rise by 2.2 percent, what is the percentage price change of these bonds? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Bond J % Bond K %
b. If interest rates suddenly fall by 2.2 percent, what is the percentage price change of these bonds? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
I have posted this question already and got an incorrect answer, please do not post the same answer. thank you
Bond J is a 5.8 percent coupon bond. Bond K is a 9.8 percent coupon bond. Both bonds have 15 years to maturity and have a YTM of 7.6 percent.
a. If interest rates suddenly rise by 2.2 percent, what is the percentage price change of these bonds? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Bond J % Bond K %
b. If interest rates suddenly fall by 2.2 percent, what is the percentage price change of these bonds? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
I have posted this question already and got an incorrect answer, please do not post the same answer. thank you
Related questions
| Both bond A and bond B have 9 percent coupons and are priced at par value. Bond A has 5 years to maturity, while bond B has 20 years to maturity. |
| a. | If interest rates suddenly rise by 1.6 percent, what is the percentage change in price of bond A and bond B? (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) |
| Bond A | % |
| Bond B | % |
| b. | If interest rates suddenly fall by 1.6 percent instead, what would be the percentage change in price of bond A and bond B? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) |
| Bond A | % |
| Bond B | % |
