What would be percentage change in the price of bond

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Both Bond Huell and Bond Kuby have 8 percent coupons, make semiannual payments, and are priced at par value. Bond Huell has six years to maturity, whereas Bond Kuby has 15 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Huell and Bond Kuby? If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of Bond Huell and Bond Kuby?

Reference no: EM131319971

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