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1. Bond J is a 4 percent coupon bond. Bond K is a 10 percent coupon bond. Both bonds have 8 years to maturity, make

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1. Bond J is a 4 percent coupon bond. Bond K is a 10 percent coupon bond. Both bonds have 8 years to maturity, make semiannual payments, and have a yield to maturity of 9 percent. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? interest rate risk of lower-coupon bonds

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