What is the percentage change in price of these bonds

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Reference no: EM131962407

The Faulk Corp. has a bond with a coupon rate of 7 percent outstanding. The Gonas Company has a bond with a coupon rate of 13 percent outstanding. Both bonds have 12 years to maturity, make semiannual payments, and have a YTM of 10 percent.

If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?

What if rates suddenly fall by 2 percent instead?

Reference no: EM131962407

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