Bond J has a coupon rate of 5.5 percent. Bond S has a coupon rate of 15.5 percent. Both bonds have eight years to maturity, make semiannual payments, a par value of $1,000, and have a YTM of 12 percent.

If interest rates suddenly rise by 3 percent, what is the percentage price change of these bonds? Percentage change in price Bond J % Bond S %

If interest rates suddenly fall by 3 percent instead, what is the percentage price change of these bonds? Percentage change in price Bond J % Bond S %