Question
Bond J has a coupon rate of 4 percent. Bond K has a coupon rate of 11 percent. Both bonds have 9 years to
Bond J has a coupon rate of 4 percent. Bond K has a coupon rate of 11 percent. Both bonds have 9 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? O-19.05% -18.05% O-17.05% 0 -19.03% If Interest rates suddenly rise by 3 percent, what is the percentage price change of Bond K? 0-14.25% 0 -16.23% 34.41% 0-16.25% If Interest rates suddenly fall by 3 percent, what is the percentage price change of Bond J? 24.64% 0 -35.07% O-19.07% 24.66% If Interest rates suddenly fall by 3 percent, what is the percentage price change of Bond K? O 20.53% 0-16.27% 6.84% O 20.65%
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