What is the percentage change in the price of the bonds

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Question - What is the percentage change in the price of the bonds if interest rates suddenly rise by 5%?

Airline 1, Inc.

Coupon rate =7%

Settlement date 1/1/2000

Maturity date 1/1/2002

Face value =1,000

# of coupons per year =2

Airline 2, Inc.

Coupon rate =7%

Settlement date 1/1/2000

Maturity date 1/1/2015

Face value =1,000

# of coupons per year =2

Change in interest rate =5%

Reference no: EM131996369

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