Business
Business, 15.04.2020 05:01, AM28

Bond J has a coupon rate of 5.5 percent. Bond K has a coupon rate of 15.5 percent. Both bonds have eight years to maturity, a par value of $1,000, and a YTM of 12 percent, and both make semiannual payments. a. If interest rates suddenly rise by 3 percent, what is the percentage change in the price of these bonds? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. g., 32.16.) b. If interest rates suddenly fall by 3 percent instead, what is the percentage change in the price of these bonds? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. g., 32.16.)

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Bond J has a coupon rate of 5.5 percent. Bond K has a coupon rate of 15.5 percent. Both bonds have e...

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