Bonds A and B both have $10,000 face values, 8 yields to maturity, and 10 year terms to maturity However, bond A has a 10 coupon rate, whereas bond B sells at par (Both make annual interest payments ) If the yields on both bonds decline to 6 , calculate the percentage price changes of the two bonds

Question: Bonds A and B both have $10,000 face values, 8% yields-to-maturity, and 10-year terms-to-maturity. However, bond A has a 10% coupon rate, whereas bond B

Bonds A and B both have $10,000 face values, 8% yields-to-maturity, and 10-year terms-to-maturity. However, bond A has a 10% rate, whereas bond B sells at par. (Both make annual interest payments.) If the yields on both bonds decline to 6%, calculate the percentage price changes of the two bonds.

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