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What is the percentage price change of these bonds

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Question - Bond J has a coupon rate of 9%. Both bonds have 19 years to maturity, make semi-annual payment, and have YTM of 6 percent. If Interest rate suddenly rise by 2 percent, what is the percentage price change of these bonds? What if rates suddenly fall by 2 percent? What does this problem tell you about the interest rate risk of lower-coupon bonds?

Reference no: EM131692371

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