What is the percentage change in price of bond

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Both bond A and bond B have 10 percent coupons and are priced at par value. Bond A has 10 years to maturity, while bond B has 20 years to maturity.

If interest rates suddenly rise by 1 percent, what is the percentage change in price of bond A and bond B?

If interest rates suddenly fall by 1 percent instead, what would be the percentage change in price of bond A and bond B?

Reference no: EM13894322

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