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Ilia_Sergeevich [38]
3 years ago
7

Bond J has a coupon rate of 3 percent. Bond K has a coupon rate of 9 percent. Both bonds have 14 years to maturity, make semiann

ual 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? (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 places, e.g., 32.16.)

Business
1 answer:
beks73 [17]3 years ago
8 0

Answer: -18.80% for bond J, -15.46% for bond K

Explanation:

If interest rates suddenly rise by 2 percent, the percentage price change of bond J is -18.80% while the percentage price change of bond K is -15.46%

The calculation is provided below

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Therefore, we have:

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3 years ago
In A Knight's Tale, three friends are deciding what to do with 15 silver coins they won in a jousting tournament. They can spend
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Answers:

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3 years ago
David is buying a new car for $21,349.00. He plans to make a down payment of $3,000.00. If he's to
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Answer: (D) 5.90%

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8 0
2 years ago
Higado Confectionery Corporation has a number of store locations throughout North America. In income statements segmented by sto
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c. the cost of corporate advertising aired during the Super Bowl.

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