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Bond A has a 4% coupon and Bond B has a 9% coupon. Both have yields...

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Finance

Bond A has a 4% coupon and Bond B has a 9% coupon. Both haveyields of 7%, pays semiannually, and 4 years to maturity. What isthe percentage change in each bond if yield increases by 2%?

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Transcribed Image Text

Bond A has a 4% coupon and Bond B has a 9% coupon. Both haveyields of 7%, pays semiannually, and 4 years to maturity. What isthe percentage change in each bond if yield increases by 2%?

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