Bond J has a coupon of 5.8 percent. Bond K has a coupon of 9.8 percent. Both bonds have 15 years to maturity and have a YTM of 7.6 percent. a. If interest rates suddenly rise by 2.2 percent, what is the percentage price change of these bonds? Note: 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 -17.38% Bond J Bond K -16.18 % b. If interest rates suddenly fall by 2.2 percent, what is the percentage price change of these bonds? Note: 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 23.55 % Bond J Bond K 21.09 %
Bond J has a coupon of 5.8 percent. Bond K has a coupon of 9.8 percent. Both bonds have 15 years to maturity and have a YTM of 7.6 percent. a. If interest rates suddenly rise by 2.2 percent, what is the percentage price change of these bonds? Note: 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 -17.38% Bond J Bond K -16.18 % b. If interest rates suddenly fall by 2.2 percent, what is the percentage price change of these bonds? Note: 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 23.55 % Bond J Bond K 21.09 %
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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Nikulbhai
Transcribed Image Text:Bond J has a coupon of 5.8 percent. Bond K has a coupon of 9.8 percent. Both bonds have 15 years to maturity and have a YTM of 7.6
percent.
a. If interest rates suddenly rise by 2.2 percent, what is the percentage price change of these bonds?
Note: 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
-17.38%
Bond J
Bond K
-16.18
%
b. If interest rates suddenly fall by 2.2 percent, what is the percentage price change of these bonds?
Note: 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
23.55 %
Bond J
Bond K
21.09
%
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