Bond S is a 4 percent coupon bond.Bond T is a 10 percent coupon bond.Both bonds have 11 years to maturity,make semiannual payments,and have a yield-to-maturity of 7 percent.If interest rates suddenly rise by 2 percent,what will the percentage change in the price of Bond T be?
A) -15.16 percent
B) -14.87 percent
C) -13.56 percent
D) -12.92 percent
E) -12.67 percent
Correct Answer:
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