Business, 15.04.2020 05:01 AM28

Bond J has a coupon rate of 5.5 percent. Bond K has a coupon rate of 15.5 percent. Both bonds have eight years to maturity, a par value of $1,000, and a YTM of 12 percent, and both make semiannual payments. a. If interest rates suddenly rise by 3 percent, what is the percentage change in the price 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. If interest rates suddenly fall by 3 percent instead, what is the percentage change in the price of these bonds? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. g., 32.16.)

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 20:30, vismayagejjala

technology is the application of knowledge and tools to solve problems and perform tasks more efficiently. t/f

Answers: 1

continue

Business, 22.06.2019 09:40, nessross1018

Salt corporation's contribution margin ratio is 78% and its fixed monthly expenses are $30,000. assume that the company's sales for may are expected to be $89,000. required: estimate the company's net operating income for may, assuming that the fixed monthly expenses do not change.

Answers: 1

continue

Business, 22.06.2019 21:10, kalawson2019

You own a nonunion company with 93 nonexempt employees. all of these employ- ees pack books into boxes for shipment to customers throughout the united states. because of wide differences in performance, you have decided to try performance appraisal, something never done before. until now, you have given every worker the same size increase. now you want to measure performance and reward the best performers with bigger increases. without any further information, which of the five types of appraisal formats do you think would be most appropriate? justify your answer. do you anticipate any complaints, or other comments, from employees after you implement your new system?

Answers: 1

continue

Business, 22.06.2019 22:00, thruhdyjgrt

Acompany's sales in year 1 were $300,000, year 2 were $351,000, and year 3 were $400,000. using year 2 as a base year, the sales percent for year 3 is

Answers: 2

continue

You know the right answer?

Bond J has a coupon rate of 5.5 percent. Bond K has a coupon rate of 15.5 percent. Both bonds have e...