Both bond a and bond b have 10 percent coupons and are, Ask an Expert

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Both bond A and bond B have 10 percent coupons and are priced at par value. Bond A has 10 years to maturity, while bond B has 20 years to maturity.

If interest rates suddenly rise by 1 percent, what is the percentage change in price of bond A and bond B?

If interest rates suddenly fall by 1 percent instead, what would be the percentage change in price of bond A and bond B?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91568368

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