If interest rates suddenly rise by 2 percent what is the


Bond J is a 4 percent coupon bond. Bond K is a 10 percent coupon bond. Both bonds have 18 years to maturity, make semiannual payments, and have a YTM of 7 percent.

If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?

 

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Finance Basics: If interest rates suddenly rise by 2 percent what is the
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