Answer Questions (a) and (b) on interest rate risk and duration (a) (0.5 point) Both bond A and bond B have 6 percent coupons and are priced at par value. Bond A has 5 years to maturity, while bond B has 15 years to maturity. Suppose interest rates suddenly rise by 2 percent. Which bond has the higher interest rate risk? Explain. (b) (0.5 point) Bond J is a 4 percent coupon bond. Bond K is an 8 percent coupon bond. Both bonds have 10 years to maturity and have an YTM of 7 percent. Suppose interest rates suddenly rise by 3 percent. Which bond has a shorter duration? Explain. Paragraph B 1 66 EE Path: P