a. If interest rates suddenly rise by 1 percent, what is the percentage price change of these bonds? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. %A in Price Bond J 7.90 X % Bond K 7.90 % b. If interest rates suddenly fall by 1 percent, what is the percentage price change of these bonds? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. %A in Price Bond J 5.90 X % Bond K 5.90 x %
a. If interest rates suddenly rise by 1 percent, what is the percentage price change of these bonds? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. %A in Price Bond J 7.90 X % Bond K 7.90 % b. If interest rates suddenly fall by 1 percent, what is the percentage price change of these bonds? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. %A in Price Bond J 5.90 X % Bond K 5.90 x %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Bond J has a coupon of 6.2 percent. Bond K has a coupon of 10.2 percent. Both bonds have 20
years to maturity and have a YTM of 6.9 percent.
a. If interest rates suddenly rise by 1 percent, what is the percentage price change of these
bonds? (A negative value should be indicated by a minus sign. Do not round intermediate
calculations. Enter your answers as a percent rounded to 2 decimal places.)
Answer is complete but not entirely correct.
%A in Price
Bond J
7.90 X %
Bond K
7.90 X %
b. If interest rates suddenly fall by 1 percent, what is the percentage price change of these
bonds? (Do not round intermediate calculations. Enter your answers as a percent rounded to
2 decimal places.)
X Answer is complete but not entirely correct.
%A in Price
Bond J
5.90 X %
Bond K
5.90 X %
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