Percentage change in price of bond a and bond b

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Both Bond A and Bond B have 6 percent coupons and are priced at par value. Bond A has 5 years to maturity, while Bond B has 15 years to maturity.

a. If interest rates suddenly rise by 2 percent, what is the percentage change in price of Bond A and Bond B? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Bond A:

Bond B:

b. If interest rates suddenly fall by 2 percent instead, what would be the percentage change in price of Bond A and Bond B? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Bond A:

Bond B:

Reference no: EM132459257

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