Both bond a and bond b have 72 percent coupons and are, Ask an Expert

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Both Bond A and Bond B have 7.2 percent coupons and are priced at par value. Bond A has 9 years to maturity, while Bond B has 15 years to maturity. If interest rates suddenly rise by 2 percentage points, what is the difference in percentage changes in prices of Bond A and Bond B? (i.e., Bond A - Bond B). The bonds pay coupons twice a year. (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Please show all work and/or how to get the answer by using the BAII Plus calculator

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92719842

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