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Bond J has a coupon rate of 3 percent. Bond K has a coupon rate of 12 percent. Both bonds have 7 years to maturity,

Bond J has a coupon rate of 3 percent. Bond K has a coupon rate of 12 percent. Both bonds have 7 years to maturity, make semiannual payments, and have a YTM of 7 percent.

If interest rates suddenly rise by 3 percent, what is the percentage price change of Bond J?

-14.38%

-16.38%

-16.36%

-15.38%

If interest rates suddenly rise by 3 percent, what is the percentage price change of Bond K?

-13.65%

-11.67%

-13.67%

32.63%

If interest rates suddenly fall by 3 percent, what is the percentage price change of Bond J?

20.20%

-16.40%

20.18%

-34.65%

If interest rates suddenly fall by 3 percent, what is the percentage price change of Bond K?

16.47%

16.59%

10.90%

-13.69%

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Previous Question Next Question

	If interest rates suddenly rise by 3 percent, what is the percentage price change of Bond J?

	-14.38% -16.38% -16.36% -15.38%

	If interest rates suddenly rise by 3 percent, what is the percentage price change of Bond K?

	-13.65% -11.67% -13.67% 32.63%

	If interest rates suddenly fall by 3 percent, what is the percentage price change of Bond J?

	20.20% -16.40% 20.18% -34.65%

	If interest rates suddenly fall by 3 percent, what is the percentage price change of Bond K?

	16.47% 16.59% 10.90% -13.69%