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Bond J has a coupon rate of 4 percent. Bond K has a coupon rate of 9 percent. Both bonds have 7 years to maturity,
Bond J has a coupon rate of 4 percent. Bond K has a coupon rate of 9 percent. Both bonds have 7 years to maturity, make semiannual payments, and have a YTM of 6 percent.
-If interest rates suddenly rise by 2 percent, what is the percentage price change of Bond J?
-If interest rates suddenly rise by 2 percent, what is the percentage price change of Bond K?
-If interest rates suddenly fall by 2 percent, what is the percentage price change of Bond J?
-If interest rates suddenly fall by 2 percent, what is the percentage price change of Bond K?
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