1. Bond J has a coupon rate of 5.5 percent. Bond S has a coupon rate of 15.5 percent. Both bonds have eight years to maturity, make semiannual payments, a par value of $1,000, and have a YTM of 12 percent.

If interest rates suddenly rise by 3 percent, what is the percentage price change 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.)

	Percentage change in price
Bond J	%
Bond S	%

If interest rates suddenly fall by 3 percent instead, what is the percentage price change of these bonds? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

	Percentage change in price
Bond J	%
Bond S	%
2. Bond P is a premium Bond with a coupon rate of 8.2 percent. Bond D is a discount Bond with a coupon rate of 4.2 percent. Both Bonds make annual payments, have a YTM of 6.2 percent, a par value of $1,000, and have seven years to maturity. What is the current yield for Bond P? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Current yield % What is the current yield for Bond D? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Current yield % If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Capital gains yield % If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond D? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Capital gains yield %