If the market rate suddenly changes down 2 what is the


Two bonds have the following features:

Bond A                                     Bond B

Coupon rate                              6.2%                                          6.2%

Payment per period          Semiannual                            Semiannual

Priced at                                     Par = $1000                           Par $1000

Maturity                                     5 years                                       25 years

Suppose:

If the market rate suddenly changes down 2%, what is the price for Bond A, and Bond B?

If the market rate suddenly changes up 2%, what is the price for Bond A, and Bond B?

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