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

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

multiple choice

-18.62%

-19.60%

-19.62%

-17.62%

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

multiple choice

-17.45%

-17.43%

25.97%

-15.45%

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

multiple choice

25.68%

-19.64%

-36.06%

25.70%

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

multiple choice

22.43%

-8.01%

-17.47%

22.55%