Bond J has a coupon rate of 4 percent. Bond K has a coupon rate of 9 percent. Both bonds have 10 years to maturity, make semiannual payments, and have a YTM of 7 percent.

A. If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond J?

multiple choice

-25.06%

-24.06%

-26.06%

-26.04%

B. If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond K?

multiple choice

-22.91%

-22.89%

-20.91%

34.00%

C. If interest rates suddenly fall by 4 percent, what is the percentage price change of Bond J?

multiple choice

-26.08%

38.01%

37.99%

-41.83%

D. If interest rates suddenly fall by 4 percent, what is the percentage price change of Bond K?

multiple choice

-22.93%

32.65%

32.53%

-10.95%