Bond J has a coupon rate of 5.6 percent. Bond K has a coupon rate of 15.6 percent. Both bonds have nine years to maturity, a par value of $1,000, and a YTM of 12.2 percent, and both make semiannual payments.

a.

If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?

b.

If interest rates suddenly fall by 2 percent instead, what is the percentage change in the price of these bonds?

		Bond J		Bond K
a.	Percentage change in price		%		%
b.	Percentage change in price		%		%