Bond J has a coupon rate of 4.5 percent. Bond K has a coupon rate of 14.5 percent. Both bonds have eight years to maturity, a par value of $1,000, and a YTM of 10 percent, and both make semiannual payments.

a. If interest rates suddenly rise by 3 percent, what is the percentage change in the price of these bonds? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

b. If interest rates suddenly fall by 3 percent instead, what is the percentage change in the price of these bonds? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Bond J Bond K a. -16.68 % -13.71 % Percentage change in price Percentage change in price b. -20.92 x (16.86) X %