A) Bond J is a 6 percent coupon bond. Bond K is a 12 percent coupon bond. Both bonds have 8 years to maturity, make semiannual payments, and have a YTM of 7 percent. If the interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? What if interest rates suddenly fall by 2 percent instead? What does this problem tell you about interest rate risk of lower-coupon bonds? Make sure to show your work.

B) Provide a recent yield curve. Make sure to provide the date and source for the yield curve. Describe and explain its shape using the concepts learned in class.