Question: Bonds K and L both have a face value of $ 1 , 0 0 0 and 1 5 years remaining until maturity. Their coupon

Bonds K and L both have a face value of $1,000 and 15 years remaining until maturity. Their coupon rates are 6% and 8% respectively,. If the prevailing market rate decreases from 7.5% to 6.5% compounded semiannually, calculate the price change of each bond: a. In dollars. (Round your answer to the nearest cent.) K's price rises by$ L's price rises by$ b. As a percentage of the initial price. (Round your answer to two decimal places.) K's price rises by% L's price rises by%

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