Percentage change in the price of bonds


Problem:

Bond J has a coupon rate of 4 percent. Bond S has a coupon rate of 14 percent. Both bonds have 10 years to maturity, make semiannual payments, and have a YTM of 8 percent.

Required:

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

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Accounting Basics: Percentage change in the price of bonds
Reference No:- TGS0891417

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