What would be ther percentage change in price of each bond

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Reference no: EM131047353

Laurel, Inc., and Hardy Corp. both have 9 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Laurel, Inc., bond has 3 years to maturity, whereas the Hardy Corp. bond has 16 years to maturity. If interest rates suddenly rise by 2 percent, the percentage change in the price of Bonds Laurel, Inc., and Hardy Corp. is percent and percent, respectively. If the rates were to suddenly fall by 2 percent instead, what would be ther percentage change in the price of each bond? (Negative amounts should be indicated by a minus sign. Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16))

Reference no: EM131047353

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