Both bond a and bond b have 84 percent coupons and are, Ask an Expert

Finance

Both bond A and bond B have 8.4 percent coupons and are priced at par value. Bond A has 7 years to maturity, while bond B has 18 years to maturity.

Assume if interest rates suddenly rise by 1.2 percent, what is the percentage change in the price of bond A and bond B?

Assume if interest rates suddenly fall by 1.2 percent instead, what would the percentage change in price of bond A and bond B?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91790176

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