What is the percentage change in the price of these bonds

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Reference no: EM131048704

Bond J has a coupon rate of 5.9 percent. Bond S has a coupon rate of 15.9 percent. Both bonds have twelve years to maturity, make semiannual payments, and have a YTM of 12.8 percent. Requirement 1: If interest rates suddenly rise by 3 percent, what is the percentage change in the price of these bonds? Requirement 2: If interest rates suddenly fall by 3 percent instead, what is the percentage change in the price of these bonds?

Reference no: EM131048704

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