Question

Bond J has a coupon rate of 5 percent. Bond K has a coupon rate of...

Bond J has a coupon rate of 5 percent. Bond K has a coupon rate of 9 percent. Both bonds have 6 years to maturity, make semiannual payments, and have a YTM of 8 percent. If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond J? -16.77% -17.77% -17.75% -15.77% If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond K?

-16.47% -16.49% -14.49% 20.91%

If interest rates suddenly fall by 4 percent, what is the percentage price change of Bond J?

22.54% 22.52% -29.34% -17.79%

If interest rates suddenly fall by 4 percent, what is the percentage price change of Bond K?

-16.51% 20.77% 20.65% -11.58%

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Calc:-

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Bond J has a coupon rate of 6 percent and Bond K has a coupon rate...
Bond J has a coupon rate of 6 percent and Bond K has a coupon rate of 12 percent. Both bonds have 15 years to maturity, make semiannual payments, and have a YTM of 9 percent. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,...
Bond J has a coupon rate of 3 percent and Bond K has a coupon rate...
Bond J has a coupon rate of 3 percent and Bond K has a coupon rate of 9 percent. Both bonds have 17 years to maturity, make semiannual payments, and have a YTM of 6 percent. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,...
Bond J has a coupon rate of 6 percent and Bond K has a coupon rate...
Bond J has a coupon rate of 6 percent and Bond K has a coupon rate of 12 percent. Both bonds have 15 years to maturity, make semiannual payments, and have a YTM of 9 percent. a. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal...
Bond J has a coupon rate of 5.4 percent. Bond K has a coupon rate of...
Bond J has a coupon rate of 5.4 percent. Bond K has a coupon rate of 15.4 percent. Both bonds have twelve years to maturity, a par value of $1,000, and a YTM of 11.8 percent, and both make semiannual payments. a. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers...
Bond J has a coupon rate of 5.3 percent. Bond S has a coupon rate of...
Bond J has a coupon rate of 5.3 percent. Bond S has a coupon rate of 15.3 percent. Both bonds have eleven years to maturity, make semiannual payments, and have a YTM of 11.6 percent. Requirement 1: If interest rates suddenly rise by 3 percent, what is the percentage change in the price of these bonds? (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places (e.g., 32.16).) Percentage...
Bond J is a 4.0% coupon bond. Bond K is a 10.0% coupon bond. Both bonds...
Bond J is a 4.0% coupon bond. Bond K is a 10.0% coupon bond. Both bonds have 15 years to maturity, make semiannual payments and have a YTM of 7.0%. (Do not round intermediate calculations. Negative answers should be indicated by a minus sign. Round the final answers to 2 decimal places.) If interest rates suddenly rise by 2%, what is the percentage price change of these bonds? Percentage change in price of Bond J? Percentage change in price of...
Bond J is a 3 percent coupon bond. Bond K is a 9 percent coupon bond....
Bond J is a 3 percent coupon bond. Bond K is a 9 percent coupon bond. Both bonds have 7 years to maturity, make semiannual payments, and have a YTM of 6 percent. If interest rates suddenly rise by 5 percent, Bond K will decrease in price by ……………………. percent (enter 5.5% as 5.5 not 0.055, min 2 decimal accuracy)
The Faulk Corp. has a bond with a coupon rate of 5 percent outstanding. The Gonas...
The Faulk Corp. has a bond with a coupon rate of 5 percent outstanding. The Gonas Company has a bond with a coupon rate of 11 percent outstanding. Both bonds have 19 years to maturity, make semiannual payments, and have a YTM of 8 percent. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? What if rates suddenly fall by 2 percent instead? Please show all work!
Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced...
Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 2 years to maturity, whereas Bond Dave has 14 years to maturity. If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Sam?          If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave?          If rates were to...
Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced...
Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years to maturity, whereas Bond Dave has 15 years to maturity. If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Sam? If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave? If rates were to suddenly fall by 4...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT