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Bond X has a coupon of 52 percent Bond Z has a coupon of 92 percent. Both bonds have 15 years to maturity and have a YTM of 74 percent a. If interest rates suddenly rise by 1.6 percent, what is the percentage price change of these bonds? (A negative value should be indicated by a minus sign. Do not rod inte calculations. Enter your answers as a percent rounded to 2 decimal 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.) - What is your conclusion?

 Jun 7, 2023
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Check your numbers carefully! The coupon of 52% is probably 5.2% and 92% is probably 9.2% and the yield of 74% is probably 7.4%. Were you asleep when you posted your question??

 Jun 7, 2023
edited by Guest  Jun 7, 2023

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