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Laurel, Inc., and Hardy Corp. both have 6 percent coupon bonds outstanding, with semiannual interest payments, and both are currently priced at the par value of $1,000. The Laurel, Inc., bond has three years to maturity, whereas the Hardy Corp.bond has 20 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of each bond? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign. Enter your answers as a percent rounded to 2 decimal places, e.g, 32.16.) Percentage change in price of Laurel, Inc., bond Percentage change in price of Hardy Corp. bond If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of each bond? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage change in price of Laurel, Inc., bond Percentage change in price of Hardy Corp. bond

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Home Page Layout FormulasData Review View dd-Ins Define Name PUse in Formula g create from Sele Trace Precedents Show Formulas Calculate Now 曙Trace Dependents ◆Error Checking. I watch | Calculation Insert Autosum Recently Financial Logical Tet Date & Lookup & Math More Function Calculate Sheet EP Create from Selection Defined Names .. Manager Timne* Reference ▼ & Tng Functions ▼ Manager Evaluate Formula WindowOptions Used Function Library Formula Auditing Calculation 019 BOND LAUREL COUPON 6.00% SEMI ANNUAL YEARS FV PV AS CURRENTLY, BONDS ARE PRICED AT PAR, THE COUPON RATE-YTM-6% 19 20 21 BOND HARDY COUPON 6.00% SEMI ANNUAL YEARS FV 1000 1000 20 1000 1000 23 24 25 26 CASE 1 27 28 29 30 ANS 31 32 33 CASE 2 34 35 36 37 ANS INTEREST RATE RISES BY 2 % RATE YTM- PRICE INTEREST RATE RISES BY 2 % RATE YTM PRICE 8% 8% 947.58 PV(D27/2,C20*2,-(C19/2)*C21,-C21) $ 802.07 PV(し27/2,K20*2,-(K19/2)*K21,-K21) % CHANGE IN PRICE-(947.58-1000)/1000*100 5.24% % CHANGE IN PRICE-(802.07-1000)/1000*100- 19.79% INTEREST RATE FALLS BY 2 % RATE YTM INTEREST RATE RISES BY 2 % RATE YTM 4% PRICE 1,056.01 PV(D34/2,C20*2,-(C19/2) C21,-C21) PRICE $1,273.55 PV(L34/2,K20*2,-(K19/2)*K21,-K21) %CHANGE IN PRICE = (105601-1000)/1000100- 560% % CHANGE IN PRICE. (1215.54-1000/1000100- 27.36% NOTE BIDDING, UNDERWRITING EUAC AW PM LIFE LP, IP, MRP, INFLATION YIELD WARRANTrefund bond CLEAN INVOICE PRICE Sheetl Sheet3 Sheet4 05:41 0-01-2019

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