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Bond J has a coupon of 8 percent. Bond K has a coupon of 12 percent. Both bonds have 12 years to maturity and have

Bond J has a coupon of 8 percent. Bond K has a coupon of 12 percent. Both bonds have 12 years to maturity and have a YTM of 9.5 percent.

a. If interest rates suddenly rise by 1 percent, what is the percentage price change of these bonds?

b. If interest rates suddenly fall by 1 percent, what is the percentage price change of these bonds?

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