Bond J has a coupon rate of 6 percent. Bond K has a coupon rate of 11 percent. Both bonds have 8 years to maturity, make semiannual payments, and have a YTM of 9 percent. If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond J? O-20.85% O-18.85% O-19.85% O-20.83% If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond K? 28.14% O-16.88% O-18.88% O-18.86%
Bond J has a coupon rate of 6 percent. Bond K has a coupon rate of 11 percent. Both bonds have 8 years to maturity, make semiannual payments, and have a YTM of 9 percent. If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond J? O-20.85% O-18.85% O-19.85% O-20.83% If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond K? 28.14% O-16.88% O-18.88% O-18.86%
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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![Bond J has a coupon rate of 6 percent. Bond K has a coupon rate of 11 percent. Both
bonds have 8 years to maturity, make semiannual payments, and have a YTM of 9
percent.
If interest rates suddenly rise by 4 percent, what is the percentage price change of
Bond J?
O-20.85%
O-18.85%
O-19.85%
O-20.83%
If interest rates suddenly rise by 4 percent, what is the percentage price change of
Bond K?
28.14%
O-16.88%
O-18.88%
Ⓒ-18.86%
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Transcribed Image Text:Bond J has a coupon rate of 6 percent. Bond K has a coupon rate of 11 percent. Both
bonds have 8 years to maturity, make semiannual payments, and have a YTM of 9
percent.
If interest rates suddenly rise by 4 percent, what is the percentage price change of
Bond J?
O-20.85%
O-18.85%
O-19.85%
O-20.83%
If interest rates suddenly rise by 4 percent, what is the percentage price change of
Bond K?
28.14%
O-16.88%
O-18.88%
Ⓒ-18.86%
< Prev
8 of 9
Next >
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