What is the percentage change price in the bonds

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Question 1: IBM bond is a 6% coupon bond. Ford bond is a 10% coupon bond. Both bonds have 10 years to maturity, make semiannual payments, and have a yield to maturity of 12%. If current interest rates rise by 2% what is the percentage change price in these bonds? Which bond would you choose to minimize your losses?

Reference no: EM132518189

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