Two bonds have the following features:
Bond A Bond B
Coupon rate 6.2% 6.2%
Payment per period Semiannual Semiannual
Priced at Par = $1000 Par $1000
Maturity 5 years 25 years
Suppose:
If the market rate suddenly changes down 2%, what is the price for Bond A, and Bond B?
If the market rate suddenly changes up 2%, what is the price for Bond A, and Bond B?