Both bond bill and bond ted have 108 percent coupons make, Financial Management

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Both bond bill and bond ted have 108 percent coupons make

Both Bond Bill and Bond Ted have 10.8 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 7 years to maturity, whereas Bond Ted has 24 years to maturity.

Requirement 1:

if interest rates suddenly rise by 3%, what is the percentage change in the price of these bonds?

Requirement 2:

If rates were to suddenly fall by 3% instead, what would be the percentage change in the price of these bonds?

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Financial Management: Both bond bill and bond ted have 108 percent coupons make

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Financial Management: Both bond bill and bond ted have 108 percent coupons make

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