Question: help on this please Both Bond A and Bond B have 7.8 percent coupons and are priced at par value. Bond A has 9 years
Both Bond A and Bond B have 7.8 percent coupons and are priced at par value. Bond A has 9 years to maturity, while Bond B has 16 years to maturity. o. If interest rates suddenly rise by 2.2 percent, what is the percentage change in price of Bond A and Bond B ? (A negotive volue should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) b. If interest rates suddenly fall by 2.2 percent instead, what would be the percentage change in price of Bond A and B ond B ? (Do nor round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
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