What is the percentage price change of bond

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Reference no: EM131316251

Bond J is a 4 percent coupon bond. Bond K is a 9 percent coupon bond. Both bonds have 10 years to maturity, make semiannual payments, and have a YTM of 7 percent.

a) If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond J?

b) If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond K?

c) If interest rates suddenly fall by 4 percent, what is the percentage price change of Bond J?

d) If interest rates suddenly fall by 4 percent, what is the percentage price change of Bond K?

Reference no: EM131316251

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