Bond J has a coupon rate of $5$ percent. Bond K has a coupon rate of $11$ percent. Both bonds have $9$ years to maturity, make semiannual payments, and have a YTM of $7$ percent.

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

multiple choice $1$

$-23\mathrm{.}65\%$

$-21\mathrm{.}67\%$

$-23\mathrm{.}67\%$ Correct

$-22\mathrm{.}67\%$

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

multiple choice $2$

$38\mathrm{.}53\%$

$-20\mathrm{.}87\%$

$-18\mathrm{.}87\%$

$-20\mathrm{.}85\%$ Incorrect

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

multiple choice $3$

$-23\mathrm{.}69\%$ Incorrect

$33\mathrm{.}23\%$

$33\mathrm{.}25\%$

$-33\mathrm{.}74\%$

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

multiple choice $4$

$-20\mathrm{.}89\%$ Incorrect

$28\mathrm{.}73\%$

$1\mathrm{.}00\%$

$28\mathrm{.}61\%$