What is the percentage price change of bonds

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Bond J is a 7 percent coupon bond. Bond K is a 11 percent coupon bond. Both bonds have 12 years to maturity and have a YTM of 8 percent. a. If interest rates suddenly rise by 1.6 percent, what is the percentage price change of these bonds? b. If interest rates suddenly fall by 1.6 percent, what is the percentage price change of these bonds?

Reference no: EM131068417

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