Computing percentage change in price of bonds


Q1) Both Bond Sam and Bond Dave have 16 percent coupons, prepare semiannual payments, and are pricing value. Bond Sam has 6 years to maturity, while Bond Dave has 13 years to maturity. If interest rates will fall by 3 percent, percentage change in price of Bonds Sam and Dave is _____ percent and _____ percent respectively.

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Accounting Basics: Computing percentage change in price of bonds
Reference No:- TGS021541

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