- 6 Points Bond X Has A Coupon Of 5 2 Percent Bond Z Has A Coupon Of 9 Percent Both Bonds Have 15 Years To Maturity And 1 (65.89 KiB) Viewed 31 times
6 points Bond X has a coupon of 5.2 percent. Bond Z has a coupon of 9 percent. Both bonds have 15 years to maturity and
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am
6 points Bond X has a coupon of 5.2 percent. Bond Z has a coupon of 9 percent. Both bonds have 15 years to maturity and
6 points Bond X has a coupon of 5.2 percent. Bond Z has a coupon of 9 percent. Both bonds have 15 years to maturity and have a YTM of 7.4 percent. a. If interest rates suddenly rise by 1.6 percent, what is the percentag price change of these bonds? (A negative value should be indicated by a minus sign. Do not found intermediate calculations. Enter your answers as a percent rounded to 2 decin el places.) b. If interest rates suddenly fall by 1.6 percent, what is the percentage price change of these bonds? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) c- What is your conclusion?