What is the percentage change in the price of bonds

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Both Bond Bill and Bond Ted have 12.4 percent coupons, make semi annual payments, and are priced at par value. Bond Bill has 5 years to maturity, whereas Bond Ted has 22 years to maturity.

Requirement 1:

If interest rates suddenly rise by 3 percent, what is the percentage change in the price of these bonds?

Reference no: EM13877723

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