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...



How can I calculate using excel? (see screenshot)


Bond J has a coupon rate of 6 percent and Bond K has a coupon rate of 12 percent. Both<br>bonds have 15 years to maturity, make semiannual payments, and have a YTM of 9<br>percent.<br>If interest rates suddenly rise by 2 percent, what is the percentage price change of<br>these bonds? (A negative answer should be indicated by a minus sign. Do not<br>round intermediate calculations and enter your answers as a percent rounded to<br>2 decimal places, e.g., 32.16.)<br>b. What if rates suddenly fall by 2 percent instead? (Do not round intermediate<br>calculations and enter your answers as a percent rounded to 2 decimal places,<br>e.g., 32.16.)<br>а.<br>а.<br>Bond J<br>%<br>Bond K<br>%<br>b.<br>Bond J<br>%<br>Bond K<br>%<br>

Extracted text: 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? (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.) b. What if rates suddenly fall by 2 percent instead? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) а. а. Bond J % Bond K % b. Bond J % Bond K %

Jun 02, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here