Requirement 1 if interest rates suddenly rise by 2 percent


Bond J has a coupon rate of 5.8 percent. Bond S has a coupon rate of 15.8 percent. Both bonds have eleven years to maturity, make semiannual payments, and have a YTM of 12.6 percent. Requirement 1: If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?

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Finance Basics: Requirement 1 if interest rates suddenly rise by 2 percent
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