What is the percentage price change of these bonds

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Question - Bond J has a coupon of 5 percent. Bond K has a coupon of 9 percent. Both bonds have 15 years to maturity and have a YTM of 5.2 percent.

a. If interest rates suddenly rise by 1.4 percent, what is the percentage price change of these bonds?

b. If interest rates suddenly fall by 1.4 percent, what is the percentage price change of these bonds?

Reference no: EM132909377

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