#$17.$ Interest Rates Risk:

Bond J is a $4\%$ coupon bond. Bond S is a $14\%$ coupon bond. Both bonds have eight years to maturity, make semiannual payments, and have a YTM of $9\%.$

If interest rates suddenly rise by $2\%,$ what is the percentage price change of these bonds?

What if rates suddenly fall by $2\%$ instead?

What does this problem tell you about the interest rate risk of lower$-$coupon bonds?