Business, 07.11.2019 01:31 toddb8106

Bond j has a coupon rate of 4 percent. bond k has a coupon rate of 14 percent. both bonds have 17 years to maturity, a par value of $1,000, and a ytm of 8 percent, and both make semiannual payments. a. if interest rates suddenly rise by 2 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 2 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 4 percent. bond k has a coupon rate of 14 percent. both bonds have 17 ye...

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