2. Bond J is a 7 percent coupon bond. Bond K is a 15 percent coupon bond. Both bonds have 10 years to maturity, make semiannual payments, and have a YTM of 10 percent.

a) If interest rates suddenly rise by 1% point, what is the percentage price change of Bond J?

b) If interest rates suddenly rise by 1% point, what is the percentage price change of Bond K?

c) If interest rates suddenly fall by 1% point instead, what is the percentage price change of Bond J?

d) If interest rates suddenly fall by 1% point instead, what is the percentage price change of Bond K?