Both bond bill and bond ted have 94 percent coupons make


Both Bond Bill and Bond Ted have 9.4 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 5 years to maturity, whereas Bond Ted has 22 years to maturity. Both bonds have a par value of 1,000. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?

Percent in change for?

Bond Bill -

Bond ted -

If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of these bonds?

Percent in change for?

Bond Bill -

Bond ted -

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Financial Management: Both bond bill and bond ted have 94 percent coupons make
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