Bond J has a coupon rate of 4 percent. Bond K has a coupon rate of 11 percent. Both bonds have 8 years to maturity, make semiannual payments, and have a YTM of 8 percent.

If interest rates suddenly rise by 2 percent, what is the percentage price change of Bond J?

multiple choice

-11.99%

-12.01%

-11.01%

-10.01%

If interest rates suddenly rise by 2 percent, what is the percentage price change of Bond K?

multiple choice

23.90%

-8.27%

-10.27%

-10.25%

If interest rates suddenly fall by 2 percent, what is the percentage price change of Bond J?

multiple choice

-32.51%

14.01%

13.99%

-12.03%

If interest rates suddenly fall by 2 percent, what is the percentage price change of Bond K?

multiple choice

11.73%

-10.29%

6.42%

11.85%