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Bond J has a coupon of 6.8 percent. Bond K has a coupon of 10.8 percent. Both bonds have 20 years to maturity and have

Bond J has a coupon of 6.8 percent. Bond K has a coupon of 10.8 percent. Both bonds have 20 years to maturity and have a YTM of 7.1 percent.

a. If interest rates suddenly rise by 1.4 percent, what is the percentage price change of these bonds?

b. If interest rates suddenly fall by 1.4 percent, what is the percentage price change of these bonds?

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