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Business, 28.11.2019 04:31 luischavolla10

Bond j is a 5 percent coupon bond. bond k is an 11 percent coupon bond. both bonds have 8 years to maturity, make semiannual payments, and have a ytm of 8 percent. if interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? what if rates suddenly fall by 2 percent instead? what does this problem tell you about the interest rate risk of lower-coupon bonds?

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Bond j is a 5 percent coupon bond. bond k is an 11 percent coupon bond. both bonds have 8 years to m...
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