Bond J has a coupon rate of 5 percent. Bond K has a coupon rate of 10 percent. Both bonds have 10 years to maturity, make semiannual payments, and have a YTM of 9 percent.

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

i)-24.41%

ii) -22.41%

iii) -23.41%

iv) -24.39%

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

i) 28.04%

ii) -21.63%

iii) -21.61%

iv) -19.63%

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

i) 35.14%

ii) -44.07%

iii) 35.16%

iv) -24.43%

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

i) -21.65%

ii) 30.49%

iii) 30.37%

iv) -15.53%