Business, 14.04.2020 23:23 mccdp55

Bond A and Bond B both have 16 years to maturity and a face value of $1,000. Bond A has a 2.50% coupon while Bond B has a 5.5% coupon. Assume the current market rate is 2.50%. What is the percentage price change for both bonds if the current market interest rate suddenly rises from 2.50% to 5.00%?

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Bond A and Bond B both have 16 years to maturity and a face value of $1,000. Bond A has a 2.50% coup...

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