#5: Bond J is a zero-coupon bond; Bond K is a 10 percent semiannual coupon bond. Both bonds have 15 years to maturity and have a YTM of 6%. a) If interest rates suddenly rise by 3%, what is the percentage change in prices of these bonds? b) What if rates suddenly fall by 3% instead? Illustrate your answers by graphing Percentage Change in Bond Prices versus YTM for both bonds on one graph. What does this problem tell you about the interest rate risk of lower-coupon bonds