Bond J has a coupon rate of 3 percent. Bond K has a coupon rate of 9 percent. Both bonds have 19 years to maturity, make semi-annual payments, and have a YTM of 6 percent.

A. What is the price of each bond today?

B. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?

C. What if rates suddenly fall by 2 percent instead? What is the percentage change of each bond?

D. What do these results tell you about the interest-rate risk of lower-coupon bonds?