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Bond J has a coupon rate of 4.1 percent. Bond S has a coupon rate of 14.1 percent. Both bonds have nine years to maturity, make semiannual payments, a par value of $1,000, and have a YTM of 9.2 percent. If interest rates suddenly rise by 3 percent, what is the percentage price change of these bonds? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Percentage change in price

Bond J - %

Bond S - %

If interest rates suddenly fall by 3 percent instead, what is the percentage price change of these bonds?

Percentage change in price

Bond J - %

Bond S - %

Financial Management, Finance

  • Category:- Financial Management
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